OTCQX:MRVFF - Post by User
Comment by
HippygirL74on Nov 05, 2009 10:01pm
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Post# 16459131
RE: RE: Someone sent this to me @ SanMiguelGto1
RE: RE: Someone sent this to me @ SanMiguelGto1Yes, like Suede29 said, your royalty payment is wrong.
Now, in a high growth company, the P/E ratio is a poor ratio to use. You should try using the PEG ratio instead and compare it to other Pharma's PEG ratio to see how it compares. So in your example you are using a P/E ratio of 15 but with the US market now opened up, the growth rate will be huge. A PEG ratio below 1 is very good and a good indicator if you will make money on the SP or not. If the PEG ratio was "1", then the company would be fairly valued right? So if you think a PE of 15 is reasonable, then fair value would put the growth rate at 15 also. But the growth rate of the eps per year will be much much higher than 15%, so it is very obvious to me that we are undervalued which is good for those wanting an investment. Notice that i said investment and not a "play".
And the only the market that really counts is the US market.
special hello to Beenthere.