Earnings Vs Stock Price
in response to
by
posted on
Jul 03, 2007 02:33PM
Reuters' quote: "The faster a company grows, the higher it's stock P/E can be."
The matrix below shows what earnings would need to be, and what the PE would be at a few Stock Prices. $10 is perhaps optimistic but not totally unrealistic,
Earnings | P/E | Earnings PS | Stock Price | |
Reported = |
$10,662,497 | 19 | $0.03 | $0.54 |
If 10x earnings |
$106,624,970 | 19 | $0.28 | $5.35 |
If 2x P/E | $106,624,970 | 38 | $0.28 | $10.70 |