Overvalued4 Aug 2015 10:54
This company is grossly overvalued along with various other tech based service providing stocks... Despite the 50% rise in turnover, Pre-tax profit is at £9.4m, a 300 P/E ratio and management forecasting growth stabilising at 15%. Projecting 15% growth compounded (and applying that same ratio to the profit figures) it would take 22 years of revenue and profit growth at 15% to come close to a respectable P/E ratio of 15. Once the management start issuing some profit and growth warnings, this stock won't be long halving!