Technology One Limited’s (ASX:TNE) 31% Price Boost Is Out Of Tune With Revenues
Technology One Limited (ASX:TNE) shares have had a really impressive month, gaining 31% after a shaky period beforehand. The annual gain comes to 119% following the latest surge, making investors sit up and take notice.
Since its price has surged higher, given around half the companies in Australia’s Software industry have price-to-sales ratios (or “P/S”) below 3.2x, you may consider Technology One as a stock to avoid entirely with its 21.8x P/S ratio. Although, it’s not wise to just take the P/S at face value as there may be an explanation why it’s so lofty.
See our latest analysis for Technology One
