Kraken Robotics current high P/E ratio looks inflated because the market is still viewing it based on old, incomplete financials rather than the newly expanded business after the Coveyla merger. The combined results and added revenue from the acquisition haven’t fully rolled into the reported earnings yet, so profits appear lower on paper than they really are on a “pro forma” basis. In simple terms, the company’s earnings haven’t caught up to its new size, which makes the valuation look more expensive than it likely will once the merged financials are fully reflected.
Just wanted to throw this out there in simple language for everyone that’s freaking out right now over the high PE and panic selling.
This is a great lesson in knowing what you are invested in, being informed and having conviction in strong companies helps you through the down days and allows you to see them for what they are, buying opportunities.
Happy investing Krakheads! Love you all