Freelancer impressive but overpriced

Freelancer impressive but overpriced. Trevor Sykes has taken a look at Freelancer (FLN) following the highly successful IPO. Freelancer is a clear leader in the online jobs market holding the top position in terms of traffic by a long way. In essence it has created a market place skills available across the world to any employer. But so far the business is only marginally profitable with only 2.5 per cent of the $18.3 million revenue falling to the bottom line. On conventional valuations things aren't pretty. The $470,000-odd NPAT equates to earnings of 0.1¢ a share, which means that at 50¢, the stock was priced at 500 times earnings. When it hit $1.80, the price/earnings ratio blew to 1800:1. So clearly investors in the IPO are not looking at traditional measures for this investment. Interested to hear peoples thoughts on appropriate valuation methods for stocks like FLN. (VIEW LINK)