Sam Chun Dang Pharm. Co., Ltd’s (KOSDAQ:000250) 27% Share Price Surge Not Quite Adding Up
Despite an already strong run, Sam Chun Dang Pharm. Co., Ltd (KOSDAQ:000250) shares have been powering on, with a gain of 27% in the last thirty days. The last 30 days bring the annual gain to a very sharp 63%.
After such a large jump in price, given around half the companies in Korea’s Pharmaceuticals industry have price-to-sales ratios (or “P/S”) below 0.9x, you may consider Sam Chun Dang Pharm as a stock to avoid entirely with its 24.5x 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.
