Advantage Solutions Inc.’s (NASDAQ:ADV) Share Price Boosted 37% But Its Business Prospects Need A Lift Too
Advantage Solutions Inc. (NASDAQ:ADV) shareholders would be excited to see that the share price has had a great month, posting a 37% gain and recovering from prior weakness. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 46% over that time.
Even after such a large jump in price, Advantage Solutions’ price-to-sales (or “P/S”) ratio of 0.2x might still make it look like a buy right now compared to the Media industry in the United States, where around half of the companies have P/S ratios above 0.9x and even P/S above 4x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
