Hydsoft Technology Stock Forum

Investors may be overvaluing the company due to high P/S ratio, expecting it to outperform the industry. However, its weaker momentum and risk of future disappointment if P/S falls to match recent growth rates, suggest caution.

Despite Hydsoft TechnologyLtd's share price drop, its P/S is still higher than most industry peers, suggesting possible over-optimism. Without significant medium-term performance improvement, the P/S ratio may decline to a more reasonable level.

Despite lower ROI, Hydsoft is committed to growth, a fact acknowledged by market trends. Exercise caution with the company over a red flag and a more conservative funding approach that may further affect ROCE.