What Life360, Inc.’s (ASX:360) 26% Share Price Gain Is Not Telling You
Despite an already strong run, Life360, Inc. (ASX:360) shares have been powering on, with a gain of 26% in the last thirty days. The last month tops off a massive increase of 190% in the last year.
Following the firm bounce in price, Life360 may be sending strong sell signals at present with a price-to-sales (or “P/S”) ratio of 19.9x, when you consider almost half of the companies in the Software industry in Australia have P/S ratios under 3.8x and even P/S lower than 1.7x aren’t out of the ordinary. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
