CTQ-1st research report, page-2

Have been doing some thinking about the various Brokers/Analysts puting out price targets, especially small/microaps like CTQ
I attended their AGM and am also most heartened by Mark Simari's continual buying...indication of confidence.
At the AGM the board treated me very well and explained answers to all questions I had.
I believe these guys are okay. They have uncovered a market and have the experience and knowledge to succeed.
I will be here as long as it takes if they continue to execute as they have.
BUT...$0.22c price target??? I/we wish.
The current short term Bond rate is about 5% the 10 year bond rate is about 3.45% These reflect the cost of capital.
Factors determining the share price include liquidity, the cost of $$ (both for the company and anyone wishing to invest) and then a risk premium based around an investors view of the longer term profitability and therefore value.
CGS is probably their nearest comparator (not competitor) CGS is currently trading at 53.15 X P/E
(note ASX bundles CTQ against Sigma Healthcare...dunno how they figured that SIG is a very different business indeed)
Anyway, back to my point. What earnings multiples would justify a $0.22 price target? At what multiple?
PGC current market cap $6.79 M (153,600,000 shares)
153,600,000 X $0.22 = $33.792 Million
CTQ valuation will need to rise 4.796 Times ( 497.65%)
Sensible question then becomes , what level of earnings justify that?
Until any company reaches FCF + then Profitability they must be regarded with some degree of risk. That risk is a large part of the valuation..