Chengdu huasun technology group Inc.'s high P/E ratio is alarming due to its recent poor growth. If earnings trends persist, the share price may drop further. The current P/E ratio is viewed as unsustainable, posing a risk to shareholders and potential investors.
Despite lower EPS, the market hasn't shown increased concern for the company. The share price change seems tied to the EPS reduction. The past year's performance may be a blip, as long-term investors saw a 1.4% annual return over five years.
Chengdu huasun technology group's low P/S ratio could reflect investor expectations of average performance. Despite this, weak revenue growth may push shares down, potentially leading to an overvaluation.
Chengdu huasun technology group Inc., LTD. Stock Forum
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