Originally Posted by
Stranger_Danger
My estimate was based on the "over 3 million" sales figure that was announced today, not sure what "growth announced since" refers to as todays announcement is the most up to date data we have. My estimated P/S is on estimated figures for a year that ended only yesterday.
Don't get me wrong, Xero are doing lots of good things. I just have a suspicion that when/if these things come to fruition, the valuation will be less than today. I like the product and the company. The stock at this valudation? Not so much.
They are not close to profitability but lets say they shock the market and announce a net profit of 1 million tomorrow.
Is that good news?
All it would do is clarify the situation, ie, a P/E of 140 or so.