today's west business page 9, page-8

You're correct, it doesn't give a value of over 80M. However the SP will not necessarily follow the rules as you think it should. I don't think that we will hit the 5c mark immediately once the tech is proven. But any new contracts will undoubtedly provide steady rise in SP based in the potential of future value. Remember this is a game and people like to gamble when they think they see good opportunity. In simplistic terms the company is only worth the shares on issue plus assets minus liability. But with revenue which should be generated, future contracts, funding availabilty and unforeseen circumstances, it makes it difficult to calculate the exact true value of a company. There are many PC the top stocks on the asx today which are grossly overpriced, yet they take months or years to correct. If you would like an insight to a formula for calculating true values then you must also use projected earnings as well as past earnings. There is a good book on the market which will teach you all this, its called 'valuable' it was written by a man who I have worked with on occasion in the past, he is very good at what he does. Please take the time to read it, as there are many factors which can influence the SP and its true value.. Although erj is not the best example of a valuable company at this stage,I believe it willprove to be in time. I have had a long term view of this company from day one. I know we all like to believe that sometimes you get lucky and make riches overnight, but the truth is it only happens with inside info. You can make some money here is you have the patience to but now and not sell until it hits price you are happy with. If you force the market to meet you, they eventually will creep up if they want it bad enough. Unless people are in financial dire straits, I don't get why there are some people that sell for such short term gain, yes you may double your money quickly and make a couple of thousand here and there, but the major gains are left to those who hold in good position. Sorry I couldn't answer your valuation question with a simple formula, but its not the way it works. Just think what will happen when all systems are go, they sign up a few contract and we get more and more business news coverage. It'll do ok, just wait for it if you can.