Max and Erma's Restaurants is a NASDAQ listed security that has been trading in a range between $7.00 and $9.83 over the past year. With 2,554,470 shares outstanding, a recent price of $8.09 gives a total market capitalization of $20,410,471. While there are certainly larger companies, Max and Erma's Restaurants has definitely earned its place in the pack. Last year, Max and Erma's Restaurants created $-0.02 in earnings for every share outstanding.
Max and Erma's Restaurants is currently priced by the market at 383.00 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.
With a share price under $50 a share and earnings per share below $1 a share, Max and Erma's Restaurants could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.
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