TA discussion, page-6350

Hi Hammer
... Alas not much if you use the PE ratio as a valuation

Based on $12m revenue and using costs and margin as per the last report - but excluding all the costs associated with the prior debt .. then a market cap value could be in the range of $5m to $8m based on PE ratios of 15 and 25 (and a resulting profit of around 300k) ... so less than the current market cap of $18m - which is really why you can't use traditional valuation methods on a company like Alexium as the Current market cap of $18m still has a measure of hope and speculation built into it.


But I'd imagine also that if revenue was to go from last years $6m to $12m, then the current share-price would likely go up as would the current market cap of around $18m - so really Alexium's market cap can't be valued around traditional valuation methods (PE, Asset backing etc ...) at the moment as its still speculative.

I'm not holding these days but still check the thread occasionally - I had hopes after the refinancing but sales only went down.
Good luck to you

	Sales	12,000,000.00
1	Cost of Sales	6,600,000.00
2	Gross Profit	5,400,000.00
3	Margin	45%
4
5
6	Operating Expenses	5,085,563.00
7
8	Profit	314,437.00
9
10
11		Market Cap
12	PE of 15	4,716,555
13	PE of 25	7,860,925