What Avon Technologies Plc’s (LON:AVON) 30% Share Price Gain Is Not Telling You
Avon Technologies Plc (LON:AVON) shareholders would be excited to see that the share price has had a great month, posting a 30% gain and recovering from prior weakness. Looking back a bit further, it’s encouraging to see the stock is up 34% in the last year.
Since its price has surged higher, you could be forgiven for thinking Avon Technologies is a stock not worth researching with a price-to-sales ratios (or “P/S”) of 2.4x, considering almost half the companies in the United Kingdom’s Aerospace & Defense industry have P/S ratios below 1.7x. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/S.
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