What Ildong Pharmaceutical Co., Ltd.’s (KRX:249420) 33% Share Price Gain Is Not Telling You
Ildong Pharmaceutical Co., Ltd. (KRX:249420) shares have continued their recent momentum with a 33% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 68%.
Even after such a large jump in price, it’s still not a stretch to say that Ildong Pharmaceutical’s price-to-sales (or “P/S”) ratio of 1.3x right now seems quite “middle-of-the-road” compared to the Pharmaceuticals industry in Korea, where the median P/S ratio is around 0.9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
