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15/07/12
11:01
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A comment fancypants mentioned re sales revenue has made me question the actual figure re earnings versus shareprice .
Heres is the simplest example I found not taking into account many other factors , eg future projected earnings
and capital funding etc.
A company with earnings of $84k and has 400k shares on issue.
84k/400k = share value of .21c
So using that example
130M /13B shares on issue = .01c
So based on earnings MST would require 130M of profit to obtain a SP of .01c .
Therefore a profit of 1.3B for SP of .10c.
If those figures are not generally about right I would be interested as to the correct formula for calculating a share price/value.
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