Despite a recent revenue drop, the market anticipates a reversal, justifying a high P/S ratio. Investors' expectations of robust future growth and confidence in future revenues are supporting the share price.
The market's focus on top line growth and the lack of profits and revenue growth have contributed to the share price drop. Investors may be expecting future growth or cost cutting. Shareholders have faced a total loss of 1.1% per year over the past five years.
Despite DuoLun Technology's declining revenue and average growth, it trades at a high P/S, indicating investors' willingness to pay a premium. However, the high P/S ratio is unexpected and future revenues may not support this positive sentiment for long.
If DuoLun Technology's declining revenue trends persist, its high P/S ratio may be unwarranted, potentially impacting the share price and investor sentiment. Current share prices may only appeal to bold investors given pessimistic medium-term conditions.
DuoLun Technology Corporation Stock Forum
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