Megaport Limited’s (ASX:MP1) 26% Price Boost Is Out Of Tune With Revenues
Despite an already strong run, Megaport Limited (ASX:MP1) shares have been powering on, with a gain of 26% in the last thirty days. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 15% over that time.
After such a large jump in price, when almost half of the companies in Australia’s IT industry have price-to-sales ratios (or “P/S”) below 1.5x, you may consider Megaport as a stock not worth researching with its 9x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it’s justified.
