Market expectations of the company outperforming the industry may explain its high P/S ratio. However, the company's recent revenue decline and expected industry growth could disappoint shareholders if the ratio falls in line with recent negative growth rates.
Despite declining revenue, the company's high P/S ratio indicates high investor expectations. If medium-term conditions don't improve, the share price may be seen as overvalued, potentially leading to a further decrease.
Shanghai HYP-ARCH Architectural Design Consultant Stock Forum
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