With a median price-to-sales (or "P/S") ratio of close to 1.1x in the Healthcare industry in the United States, you could be forgiven for feeling indifferent about Privia Health Group, Inc.'s (NASDAQ:PRVA) P/S ratio of 1.4x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
NasdaqGS:PRVA Price to Sales Ratio vs Industry July 19th 2024
How Has Privia Health Group Performed Recently?
Privia Health Group certainly has been doing a good job lately as it's been growing revenue more than most other companies. One possibility is that the P/S ratio is moderate because investors think this strong revenue performance might be about to tail off. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.
Keen to find out how analysts think Privia Health Group's future stacks up against the industry? In that case, our free report is a great place to start.
Is There Some Revenue Growth Forecasted For Privia Health Group?
The only time you'd be comfortable seeing a P/S like Privia Health Group's is when the company's growth is tracking the industry closely.
If we review the last year of revenue growth, the company posted a terrific increase of 18%. The strong recent performance means it was also able to grow revenue by 106% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenue over that time.
Looking ahead now, revenue is anticipated to climb by 10.0% each year during the coming three years according to the analysts following the company. Meanwhile, the rest of the industry is forecast to only expand by 7.6% per annum, which is noticeably less attractive.
With this information, we find it interesting that Privia Health Group is trading at a fairly similar P/S compared to the industry. It may be that most investors aren't convinced the company can achieve future growth expectations.
The Bottom Line On Privia Health Group's P/S
Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.
Looking at Privia Health Group's analyst forecasts revealed that its superior revenue outlook isn't giving the boost to its P/S that we would've expected. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. At least the risk of a price drop looks to be subdued, but investors seem to think future revenue could see some volatility.
There are also other vital risk factors to consider before investing and we've discovered 1 warning sign for Privia Health Group that you should be aware of.
If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
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在美国医疗保健行业中,中位数市销率(或"P/S"率)接近1.1倍,您可能对 Privia Health Group, Inc. (纳斯达克股票代码: PRVA) 的1.4倍市销率感到无动于衷。尽管如此,在不解释的情况下忽略市销率并不明智,因为投资者可能会忽略一个独特的机会或一个昂贵的错误。
7月19日,纳斯达克GS:PRVA市销率比行业高
Privia Health Group 最近表现如何?
Privia Health Group 最近做得确实不错,因为其营业收入的增长超过了大多数其他公司。 一种可能是,市销率中等,因为投资者认为这种强劲的收入表现可能即将结束。如果不是这样,那么现有股东有理由对股价未来的方向感到乐观。
想了解分析师如何评估 Privia Health Group 的未来与行业相比的表现吗? 在这种情况下,我们的免费报告是了解的好地方。
Privia Health Group 有没有预测出一些营业收入的增长?
您只有在公司的增长与行业紧密相连时才会放心地看到像 Privia Health Group 这样的市销率。