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Price To Sales Ratio

All articles tagged with #price to sales ratio

finance1 year ago

"Analyzing Rivian's Stock Performance and Future Prospects"

Rivian Automotive's low price-to-sales ratio (P/S) of 4.2x may indicate bullish signals compared to other US auto companies, but further investigation is needed to determine if it's justified. Despite strong revenue growth, the company's P/S remains suppressed, possibly due to market expectations of future revenue performance. Analysts anticipate a 55% annual revenue climb over the next three years, positioning the company for stronger results than the industry average, yet its P/S ratio remains lower than expected. This discrepancy suggests potential risks and volatility in future revenues, prompting caution among investors.

via Simply Wall St|
#finance#price-to-sales-ratio#revenue-growth
businessfinance2 years ago

AMD's Business Trails Industry, but Shares Remain Strong

Advanced Micro Devices (AMD) has a high price-to-sales (P/S) ratio compared to other semiconductor companies, indicating bearish signals. While the industry has seen revenue growth, AMD's revenue has declined. Analysts forecast lower revenue growth for AMD compared to the industry, raising concerns about the high P/S ratio. Shareholders may face disappointment if the P/S falls to align with the growth outlook. Investors should remain cautious at current price levels.

via Simply Wall St|
#advanced-micro-devices#businessfinance#market-analysis
finance2 years ago

Lucid Group's Stock Plummets Amidst Disappointing Sales and Production Forecast

Lucid Group, Inc. (NASDAQ:LCID) has a high price-to-sales (P/S) ratio compared to the industry, which may be surprising considering its revenue growth forecasts are in line with the wider industry. The company has been experiencing exceptional revenue growth, with an 85% gain in the last year and a projected 107% annual growth for the next three years. However, investors may be overestimating the stock's potential, as the elevated P/S ratio is unlikely to be sustained in the long term without a significant positive change. It is worth noting that there are also some risks associated with the company, including shareholder dilution and current unprofitability.

via Simply Wall St|
#finance#inc#industry-comparison