LanzaTech Global's high P/S ratio is likely due to investors' expectations of continued strong revenue performance. The potential for a decline in revenues seems remote, justifying the high P/S ratio.
Analysts predict a 73% YoY growth for the company to breakeven by 2026, a high but not unusual rate for a company in its investment period. Its lack of debt, uncommon for a cash-burning growth company, makes it a less risky investment.
Despite the high P/S ratio, shareholders appear confident in LanzaTech's future, buoyed by its outstanding revenue projections. This confidence is likely supporting the elevated P/S ratio. Unless circumstances change, a significant near-term drop in the company's share price seems unlikely.
LanzaTech Global Stock Forum
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