What Kmw Inc.’s (KOSDAQ:032500) 28% Share Price Gain Is Not Telling You
Kmw Inc. (KOSDAQ:032500) shares have continued their recent momentum with a 28% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 24% is also fairly reasonable.
After such a large jump in price, you could be forgiven for thinking Kmw is a stock to steer clear of with a price-to-sales ratios (or “P/S”) of 6.4x, considering almost half the companies in Korea’s Communications industry have P/S ratios below 1x. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
