RE: Excellent results30 Jan 2025 08:39
For a fast-growing business on the FTSE AIM market, a sensible share price can vary widely based on factors like sector, growth rate, and market conditions. However, a common valuation metric is the **Price-to-Sales (P/S) ratio**. For high-growth companies, P/S ratios can range from **2 to 5** or even higher, depending on the industry and growth expectations.
Here's a simplified example:
- **P/S Ratio**: 4
- **Annual Revenue**: £10 million
- **Sensible Share Price**: £40 million (4 x £10 million)
Does this help clarify things for you?