The P/S is a mechanism to understand the multiple at which...

The P/S is a mechanism to understand the multiple at which people are willing to pay for the company. The higher the P/S the more people are willing to pay for every dollar earned by the company. My calculation ascertained the people are willing to pay 25x what the company is earning. This is not an overdone P/S for a company in this sector. If the company increases revenue and the share price doesn't move then the P/S decreases showing that people aren't willing to pay as much for the company. If the P/S is maintained at 25 as revenues grow to $30m annualized then the company would be valued at $750m or $1.66 per share. These are just calculations illustrating my analysis.