Salvatore Ferragamo S.p.A.’s (BIT:SFER) 26% Price Boost Is Out Of Tune With Revenues
Salvatore Ferragamo S.p.A. (BIT:SFER) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 11% in the last twelve months.
In spite of the firm bounce in price, there still wouldn’t be many who think Salvatore Ferragamo’s price-to-sales (or “P/S”) ratio of 1x is worth a mention when the median P/S in Italy’s Luxury industry is similar at about 0.6x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
