What Ralco Corporation Berhad’s (KLSE:RALCO) 34% Share Price Gain Is Not Telling You
Ralco Corporation Berhad (KLSE:RALCO) shares have had a really impressive month, gaining 34% after a shaky period beforehand. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 9.9% over the last year.
Although its price has surged higher, it’s still not a stretch to say that Ralco Corporation Berhad’s price-to-sales (or “P/S”) ratio of 0.8x right now seems quite “middle-of-the-road” compared to the Packaging industry in Malaysia, where the median P/S ratio is around 0.6x. Although, it’s not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.
