Ockham's Rating/Recommendation Summary

EDIG Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at EDIG through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 17.27x and 4.26x respectively.

Utilizing this range we can see that EDIG’s current Price to Sales per share ratio of 4.00x is significantly below its average levels historically. In fact, with a current price of $0.16, EDIG is a full 63% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for EDIG.

EDIG Cash Earnings

Price to Cash Earnings analysis is inappropriate for this company due to an insufficient positive cash earnings history. Rather than calculating a potentially misleading Price to Cash Earnings analysis, we have chosen to give EDIG a neutral Price to Cash Earnings outlook at this time. However, we should point out that this metric is a significant element in Ockham’s methodology to analyzing the outlook for any company. Therefore, for EDIG, our assessment is now more dependent on the Price to Sales analysis, and investors should be cautious with a company with very limited, if any, positive cash earnings.

Peer Comparison

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E Digital Corp. Industry Grouping