EDIG Revenue Ockham Ratings & Analysis Report

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at EDIG through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 21.55x and 4.51x respectively.

Utilizing this range we can see that EDIG’s current Price to Sales per share ratio of 9.00x is significantly below its average levels historically. In fact, with a current price of $0.18, EDIG is a full 31% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for EDIG.

EDIG Cash Earnings

Cash (and the ability of a company to generate it) is a pivotal analysis at Ockham Research. With EDIG, we have found that we don't have as many years of positive Cash Earnings as we would like in order to run an analysis. When a company like EDIG has had several years of negative Cash Earnings mixed in with their positive years, it can be difficult to really get a good analysis of their potential. At Ockham, we always advise that Cash is key to any investment, so investors should consider the lack of positive years available as a signal that other types of analysis may need to be more heavily relied upon in EDIG's case.

Recent Price
(2/24/2009 3:56 PM)

$0.18

52-Week Price

$0.08 - $0.20

Market Capitalization

$50.6 Million

Dividend Yield

0.00%

Most Recent Dividend

$0.00

View Larger EDIG Chart