Investors' high expectations for the company's revenue growth may be reflected in its high P/S ratio. However, the recent medium-term revenue decline could lead to disappointment if the P/S falls in line with negative growth rates. Unless conditions improve significantly, the share price may seem overvalued.
Despite Zhejiang Haiyan Power System Resources Environmental TechnologyLtd's significant price drop, its P/S still exceeds the industry median. The high P/S ratio and poor growth rate suggest investors are hoping for a business turnaround. However, recent negative growth rates could sour sentiment, potentially leading to a difficult period for shareholders.
Zhejiang Haiyan Power System Resources Environmental Technology Stock Forum
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