The company's high P/S ratio is alarming due to its falling revenues. If this trend persists, it could jeopardize shareholders' investments. The recent share price surge may have inflated the P/S ratio, potentially leading to future disappointment for shareholders.
Despite Fanli Digital TechnologyLtd's significant price drop, its P/S still significantly exceeds the industry median. The high P/S ratio may be due to expectations of future outperformance. However, with recent poor growth, these prices may not be sustainable. Unless medium-term conditions improve significantly, investors may find the current share price hard to accept as fair value.
Despite the recent surge, the predicted continuation of a declining revenue trend may impact share price, causing skepticism on the sustainability of the prices. The high price-to-sales ratio with reducing revenue suggests investor over-optimism about the company's prospects.
Fanli Digital Technology Stock Forum
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