RE:RE:Somthing about to breakspeedy99 wrote:
I think the price to sales ratio is significant to watch. Assuming all goes as planned we will reach a price to sales ratio of 4 in the near future. Not bad for a growth stock with an exciting future. But not exactly in value territory either. You can buy many known established brands on the TSE with price to sales rations around 1.
Price/Sales ratio is largely applied to tech/growth companies. it's not really a great metric and it isn't really used much outside of those sectors. I'm generalizing but most companies are valued using EV:EBITDA multiples. the good thing is WELL is a bit of an anomaly as they are cash flow / EBITDA positive, unlike a lot of tech/growth companies!
I've posted this before but here is a good comps chart from a company presentation which shows US peers trading at upwards of 9-10X forward Sales.
https://pbs.twimg.com/media/E5E1PiAXoAAc8qZ?format=jpg&name=large I'd like to think that once WELL gets US listed, it will get some attention for being a real value play. a lot of US institutional investors are much more comfortable paying up front for growth/earnings than their Canadian counterparts.