Why Investors Shouldn’t Be Surprised By Alphawave IP Group plc’s (LON:AWE) 26% Share Price Surge
Alphawave IP Group plc (LON:AWE) shareholders are no doubt pleased to see that the share price has bounced 26% in the last month, although it is still struggling to make up recently lost ground. But the gains over the last month weren’t enough to make shareholders whole, as the share price is still down 4.1% in the last twelve months.
Since its price has surged higher, given around half the companies in the United Kingdom’s Semiconductor industry have price-to-sales ratios (or “P/S”) below 1.6x, you may consider Alphawave IP Group as a stock to avoid entirely with its 4.1x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
We’ve discovered 1 warning…
