Suggest you go research PE (price to earnings ratio) as a starting point. It's fundamental to valuing stocks.
It basically tells you how much a company is worth compared to it's annual earnings. It allows you to compare companies to each other with a common metric. Higher growth stocks will generally be valued at higher PE ratios, as you are assuming the earnings will be ramping up quickly so some of that future growth potential is already baked into the price.
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And the push to $3 begins, page-66
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