High P/S ratio may indicate overvaluation if future performance doesn't meet expectations. Recent revenue trends may not support positive sentiment, risking shareholders' investments and potential investors paying unnecessary premium.
Despite Shanghai Welltech Automation's recent drop in price and receding revenue, its high P/S ratio indicates investor optimism. However, slower-than-industry revenue growth and high P/S ratio pose a risk of further share price decrease.
Shanghai Welltech AutomationLtd's P/S ratio has risen significantly, but the falling revenues and slower growth could threaten its prospects, possibly leading to a drop in share price.
Shanghai Welltech Automation Stock Forum
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