RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Standard Pull Backyou have to be reasonable first off. Realistically you take property equipment and plant the tangibles. Trying to find value on intangibles is anyone's best guess that is why start ups end up being a free for all and that is why i said when revenue starts coming in and then more easily assessed the values of companies come crashing to Earth unless their bottom line supports the higher value. The bottom line is with starts pre rev it is hard to give a value to them be it fair or otherwise. This company is pre reve and why it should trade higher than it has is for all the reasons i said in one of my posts--it has products now before it had squat--now they have those products on presale and people ordering them. As the revenue stream comes you will know that they are selling something but is it fair to value them on the basis of starting revenue maybe maybe not as it does not take into account the ramp up and stronger flows when things are in full swing. You can try to project out but that will not be easy to do.
At the end of the day, all prices of stocks are inflated. Let's get real here. As long as companies are improving their move to either sell something in the market such as this one, their balance sheet in regards to those that are making revenue whatever the case may be the stock value goes up even if they are all in the hole. If people cared to the nth degree of profit and profitability the majority of stocks are in the red trying to first hit break even then overall profitable but you will never have negative stock value the worst case is .00000008 like this was tha is about as close to 0 as you can get.
Eguana Tech has been around for 20 plus years. Prior to its name change it was sustainable energies. Not once in its history as to my knowledge had it been profitable yet several times it traded above a buck I believe $2.25 was the high then it crashed. Companies that have strong enough backing survive and they have historically had Doughty and Hansen. Companies go through mass dilution and consolidations. Brokers don't care about all this they only care if companies can get something out there are seen as less of a risk and see the increase of revenue flow through and then get in on the action and we see how stocks get super inflated and these brokers all help to that to get tons of monies. If people cared nothing would be out in the market and there is no business but this doesn't mean that the brokers help them in the way that it is needed they are helping themselves line their pockets with quick profits but it still does keep the companies going so I will say that much.
In any case, as prices go and the companies are doing better everyone is happy until people start to say they are trading way too high based on the revenue that they are showing or lack of. I have always said the worst thing for retailers is when companies move from pre rev or some revenue to more solid ones why because many people love to live the pie in the sky (myself included) to reap higher share returns but then reality kicks in that if the revenue no where matches the ridiculously high trading prices they get slammed hard by about 40 to 60 percent so if people bought low enough they are ok if not they are not in which case the only thing to do is average down if you still believe there is growth take the losses or whatever the case may be.
The bottom line is with pre rev stock what you are seeking to place a value on especially without the revenue is unrealistic and as i have said what is good for the goose is good for the gander. Is this company worth 1 dollar. I strongly believe so on gross revenue. You did start to bring up net. How long will it take to make net 3 million like your are saying and you claim years that all depends on the companies gross profit margin and if it is high.
Here is what I say and look at if you have a gross of 20% you have to take out all the expenses. including those associated with EBITDA which is earnings before interest taxes and depreciation. Assuming that 50% gets you there I would take out another 30% on top--so in essence your gross 20 percent is like a 7 percent net I would probably go about 5-7.
But achieving EBITDA itself is not easy. Now you putting up figures without knowing revenue and hard numbers is kind of ridiculous Jose i am sorry but just being honest.
At least when you ask about how do you value a pre rev or small amounts i am saying it is very difficult although there are books that talk about it on other dimensions which i forget about but I would always start with the tangibles without which you have 0 you need property plant and equipment they are good debt and both assets and liabilites because you are paying on them--this is what the EBITDA takes into account but without numbers anyone's guess is just as good as the next person.
If companies have less than 20% gross there will be problems they would need to make huge revenues to make any real monies. I have one such company mrs historic 7-13 percent even with contract committals of $100 of millions it will take higher profit margins to reach break even first and then profitability. They have made 20 plus millions in the last 2-3 quarters but as we are talking revenue is one part then you have EBITDA and overall net profit.
I am not well versed enough to tell you how to value pre rev or small rev flow companies but I do know a little about when they make rev.
At the end of the day for fledgling companies profit isn't what even brokers look for they look for can the companies increase their assets and with that can we line our pockets fast. Like I said Sustainable has been in business for over 20 years it has seen $2.25 possibly more and as low as a nickel maybe less and everything in between and not once overall profitable that is just the market so when people talk about valuation and profitability etc i cringe. Ideally, value of shares should be reflective in profitabilty and as I said espcially those trading at $100 those that are trading less well as with every others it is what it is and the market decides all this craziness.
This is the best I can honestly answer you.