Further Upside For Alphaville S.A. (BVMF:AVLL3) Shares Could Introduce Price Risks After 28% Bounce

Alphaville S.A. (BVMF:AVLL3) shares have had a really impressive month, gaining 28% after a shaky period beforehand. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 29% in the last twelve months.

In spite of the firm bounce in price, there still wouldn’t be many who think Alphaville’s price-to-sales (or “P/S”) ratio of 0.7x is worth a mention when the median P/S in Brazil’s Consumer Durables industry is similar at about 0.6x. Although, it’s not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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