There’s Reason For Concern Over Thinkific Labs Inc.’s (TSE:THNC) Massive 72% Price Jump
Thinkific Labs Inc. (TSE:THNC) shareholders would be excited to see that the share price has had a great month, posting a 72% gain and recovering from prior weakness. Taking a wider view, although not as strong as the last month, the full year gain of 25% is also fairly reasonable.
Even after such a large jump in price, there still wouldn’t be many who think Thinkific Labs’ price-to-sales (or “P/S”) ratio of 3.2x is worth a mention when it essentially matches the median P/S in Canada’s Software industry. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
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