There’s No Escaping Delorean Corporation Limited’s (ASX:DEL) Muted Revenues Despite A 31% Share Price Rise
Delorean Corporation Limited (ASX:DEL) shareholders are no doubt pleased to see that the share price has bounced 31% in the last month, although it is still struggling to make up recently lost ground. Looking back a bit further, it’s encouraging to see the stock is up 42% in the last year.
Although its price has surged higher, Delorean’s price-to-sales (or “P/S”) ratio of 1.9x might still make it look like a strong buy right now compared to the wider Renewable Energy industry in Australia, where around half of the companies have P/S ratios above 6.4x and even P/S above 10x are quite common. However, the P/S might be quite low for a reason and it requires further investigation to determine if it’s justified.
