The .04 cents is already annualized.
2,600 subscribers X $50/subscriber/month X 12 months = $1.56 million per year in revenue. Assume half this revenue is profit gives you $780,000 profit. $780,000/19 million shares = .04 cents per year annual profit.
At $2 per share, based on these assumptions, PE ratio is 50.
I guess in today's overvalued stock market, a PE ratio of 50 for a small growing company is not that ridiculous.
However, even if they captured the entire 23,000 mortgage broker market, they would have 23,000 subscribers X 50/subscriber/month X 12 months = $13.8 million revenue per year. Assume at this scale, profits are 60% of revenue (not going to get much better than that given Uncle Sam and state taxes). 60% X $13.8 million = $8.3 million profit. Divided by 19 million shares, and you get about 44 cents per share in profit, assuming they capture the ENTIRE market. If they do capture the entire market, PE ratio won't be anything close to 50 because where would growth come from?
As far as all of these other potential sources of revenue, who can say? All I know is the website says the vast majority of revenues are from subscriptions, and that is expected to continue.
So, $10? I don't see it unless they can figure out somebody else to sell this product to besides their current market. |
