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Avricore Health Inc. V.AVCR

Alternate Symbol(s):  AVCRF

Avricore Health Inc. is committed to becoming a health innovator and applying technologies at the forefront of science to core health issues at the community pharmacy level. The Company’s goal is to empower consumers, patients and pharmacists with innovative technology, products, services and information to monitor and optimize health.


TSXV:AVCR - Post by User

Bullboard Posts
Post by kingposton Apr 25, 2016 8:55pm
331 Views
Post# 24808582

trajectory bodes well for possible multiples valued at...

trajectory bodes well for possible multiples valued at...In general when the growth rate of a company equals the P/E multiple most analysts consider those stocks as good buys .... this is just in general of course.....This means that a company with a 10% growth rate should trade with a  P/E multiple of 10 but a company growing at 100% should trade at 100 to 1 PE ... So the same company can be worth 10 times more just based on their internal growth rate being 100% instead of 10%... This obviously is a huge difference and shows how valuable high growth is...and this is the norm  on both Wall st and Bay street among fundamental financial analysts...
For start ups since they generally do not typically get earning for several years, this same generally methodology is applyed but instead using  the growth in sales as a proxy for earnings growth , in the interim, .. Another aspect is that after break even it is more common that earnings grow faster than sales, since fixed costs are spread out among a larger level of sales, and so fixed costs per unit of sales is lower and lower as sales increase... and causing earnings to rise faster than sales....
With this as a backdrop I like what I am seeing with the initial sales trajectory here...and the inferred possible valuation...
Bullboard Posts