Catapult Group International Ltd’s (ASX:CAT) 42% Price Boost Is Out Of Tune With Revenues
Catapult Group International Ltd (ASX:CAT) shareholders have had their patience rewarded with a 42% share price jump in the last month. The annual gain comes to 264% following the latest surge, making investors sit up and take notice.
After such a large jump in price, when almost half of the companies in Australia’s Software industry have price-to-sales ratios (or “P/S”) below 3.1x, you may consider Catapult Group International as a stock not worth researching with its 7.7x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
