What Groupon, Inc.’s (NASDAQ:GRPN) 39% Share Price Gain Is Not Telling You
Those holding Groupon, Inc. (NASDAQ:GRPN) shares would be relieved that the share price has rebounded 39% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
Even after such a large jump in price, there still wouldn’t be many who think Groupon’s price-to-sales (or “P/S”) ratio of 0.9x is worth a mention when it essentially matches the median P/S in the United States’ Multiline Retail industry. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a…
