i would think around 10x normally but the co. has debt, so maybe...

i would think around 10x normally but the co. has debt, so maybe its better to look at enterprise value vs earnings before interest and tax

i think EV is around 220m

EBIT last year was 23m , EBITDA (obv flatters it a bit) was 42, so the co trades on just over 5x EV / EBITDA, not that cheap , but not too expensive either

the currency was higher last year (100% imports) though and if you want to look at Net Profit After Tax (ie : how much did they really make) then they only made about $10.5 m , which puts them on a trailing P/E of c18x. Not cheap at all.

i disagree with you a bit in saying that the company is unique, at the end of the day they still sell things like other shops do and it can't be said that the retail environment is good at the moment, they do have competition

so if they make the same as last year, then the co is on 18x p/e, if they make less, then obv the p/e doesn't matter as they will likely be loss making.

if they double their profit from last year to (call it $20m) then the p/e is about 10x

thing is, I just cannot see them putting through earnings growth of 100 % in this environment

i don't think they are going out of business either though, so at what price do you want to own a business that has a profit margin of about 2% (last year) ? I would think 1x book value - that is around $4.70 per share

so i suppose if you think that earnings will double, it is probably pricing that in now, if they stay the same then its overs by about 30% IMO