$TALK DD, P/E Ratio, Internet Assets & Affiliates
Post# of 8802
Forward P/E Ratio Math
P/E = 100 is fair considering the growth rate
240% growth over 3 years = 80% growth per year.
2014 Revenue $18.8mil + $15.04mil(80% of $18.8mil) = $33.84mil(estimated 2015 Revenue)
Divide $33.84mil(revs) / 1.8bil(shares) = .0188(earnings per share)
.0188 x 100 = 1.88(based on fair p/e estimated value)
If P/E Ratio = 100 then PPS = $1.88 (Price Per Share)
p/e ratio of 1 is $0.02 pps rounding up from 0.0188 and no growth factors figured in
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