Post by
bobbythebaker on Feb 06, 2024 7:58am
Gotta Keep Up
For those of you trying to calculate things like XTRA's price/sales ratio, be careful to use only the most recent data. The company is growing its topline revenues incredibly fast. For example, last quarter the $3.11mm in revenues was 602% higher than the year ago $0.4mm in revenues. That kind of growth can make even slightly old data very, very stale.
I would humbly suggest the best way to calculate XTRA's current price/sales is to take the current market cap ($142mm) and divide by 4x the most recent quarter ($12.44mm) to come up with a an 11x price to sales/ratio. And then get ready to throw that in the garbage with XTRA quadrupling production to meet inreased demand this year. I fully expect a year from now, if the share price were to stay at today's 72 cents, we would be looking at a price/sales ratio in the low single digits. My expectation, however, is the the share price will rise in parallel with the sales growth, keeping us above 10x sales and more than doubling over the next year.
Comment by
Nightstocker on Feb 06, 2024 10:44am
Good stuff, Bobby. And FYI I was just fantasizing a share price parallel to it's growth rate, definitely not envisioning that as a realistic or expected number.