thyssenkrupp nucera AG & Co. KGaA’s (ETR:NCH2) 26% Share Price Surge Not Quite Adding Up
thyssenkrupp nucera AG & Co. KGaA (ETR:NCH2) shares have had a really impressive month, gaining 26% after a shaky period beforehand. 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, you could still be forgiven for feeling indifferent about thyssenkrupp nucera KGaA’s P/S ratio of 1.6x, since the median price-to-sales (or “P/S”) ratio for the Construction industry in Germany is also close to 1.2x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
