Zhejiang Tiantie Industry's high P/S ratio is likely due to investors' expectations of strong future revenue. Shareholders appear confident in the company's revenue outlook, making a significant share price drop unlikely.
The market may not be judging the company based on earnings growth due to the lack of correlation between EPS and share price changes. Management might be prioritizing revenue growth over EPS growth. Despite the recent decline, long term shareholders have made a gain of 12% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering.
Zhejiang Tiantie Industry's high P/S ratio is backed by strong revenue growth, expected to surpass the industry. Shareholders' confidence in future revenues keeps the P/S high. Provided analysts' forecasts are accurate, robust revenue predictions should maintain a strong share price.
Zhejiang Tiantie Industry Stock Forum
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