What DSK Co., Ltd.’s (KOSDAQ:109740) 46% Share Price Gain Is Not Telling You
DSK Co., Ltd. (KOSDAQ:109740) shares have continued their recent momentum with a 46% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 23% is also fairly reasonable.
After such a large jump in price, given around half the companies in Korea’s Semiconductor industry have price-to-sales ratios (or “P/S”) below 1.3x, you may consider DSK as a stock to avoid entirely with its 8.8x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
