Despite declining revenue, the company's high P/S ratio may reflect investor expectations of future outperformance. However, recent negative growth rates pose a risk of disappointment if the P/S aligns with these rates. The company's current trading at a P/S higher than the industry despite recent revenue decline is concerning.
Investors might be expecting a business rebound due to the firm's high P/S ratio despite reduced revenues. A continual downward trend, however, could result in shareholder letdown as P/S ratio matches negative growth rates.
Jiangsu Yangdian Science & Technology Stock Forum
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