Investors justify MLOptic's high P/S ratio due to strong future growth expectations. The potential for revenue deterioration is seen as remote, keeping the P/S ratio high. Strong revenue forecasts are expected to keep the share price buoyant, unless analysts have significantly missed their forecasts.
Despite MLOptic's low ROE, high reinvestment of profits has boosted its earnings growth. Analysts predict a momentum gain in the company's earnings. The P/E ratio could indicate expected earnings growth.
The market is backing MLOptic's high P/S ratio assuming the company's continued outperformance. Investors predict improved prospects justifying the high ratio, however, analysts disagree. MLOptic's low growth projections may risk investment with a potential P/S decrease.
Mloptic Corp. Stock Forum
No comment yet