Investors Still Aren’t Entirely Convinced By loanDepot, Inc.’s (NYSE:LDI) Revenues Despite 29% Price Jump
Despite an already strong run, loanDepot, Inc. (NYSE:LDI) shares have been powering on, with a gain of 29% in the last thirty days. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 16% in the last twelve months.
In spite of the firm bounce in price, loanDepot’s price-to-sales (or “P/S”) ratio of 0.3x might still make it look like a strong buy right now compared to the wider Diversified Financial industry in the United States, where around half of the companies have P/S ratios above 2.8x and even P/S above 6x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
