A strong performer from today's morning trading session is Medical Marijuana, Inc., whose shares rose 8.1% to $0.01 per share. For those of you thinking about investing in the stock, here is a brief look at the company's fundamentals.
Medical Marijuana, Inc., an investment holding company, operates in the cannabinoid-based nutraceutical industry. The company belongs to the Healthcare sector, which has an average price to earnings (P/E) ratio of 13.21 and an average price to book (P/B) ratio of 4.07. In contrast, MJNA has a trailing 12 month P/E ratio of 6.0 and a P/B ratio of 0.6.
P/B ratios are calculated by dividing the company's market value by its book value. The book value refers to all of the company's tangible assets minus its liabilities -- meaning that intangibles such as intellectual property, brand name, and good will are not taken into account. Traditionally, a P/B ratio of around 1 shows that a company is fairly valued, but owing to consistently higher valuations in the modern era, investors generally compare against sector averages.
Medical Marijuana, Inc. has moved -50.0% over the last year compared to -11.3% for the S&P 500 -- a difference of -38.7%. MJNA has a 52 week high of $0.03 and a 52 week low of $0.01.