SomnoMed Limited (ASX:SOM) Stock Catapults 27% Though Its Price And Business Still Lag The Industry
SomnoMed Limited (ASX:SOM) shareholders are no doubt pleased to see that the share price has bounced 27% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 12% in the last twelve months.
Although its price has surged higher, SomnoMed may still be sending very bullish signals at the moment with its price-to-sales (or “P/S”) ratio of 0.9x, since almost half of all companies in the Medical Equipment industry in Australia have P/S ratios greater than 4.3x and even P/S higher than 15x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the…
