iTalk's Forward P/E Ratio Math pt.3 If earnin
Post# of 8802
If earnings are much lower at $5,000,000
Divide $5mil(revs) / 1.8bil(shares) = .0027(earnings per share)
.0027 x 100 = 0.27(based on fair p/e estimated value)
If P/E Ratio = 100 then PPS = $0.27 (Price Per Share)
p/e ratio of 3 is $0.01 pps rounding up from 0.0027 and no growth factors figured in
a forward looking* p/e of 100 is fair considering the growth rate: