What NEXTDC Limited’s (ASX:NXT) 25% Share Price Gain Is Not Telling You
NEXTDC Limited (ASX:NXT) shareholders have had their patience rewarded with a 25% share price jump in the last month. Notwithstanding the latest gain, the annual share price return of 6.0% isn’t as impressive.
Following the firm bounce in price, when almost half of the companies in Australia’s IT industry have price-to-sales ratios (or “P/S”) below 1.7x, you may consider NEXTDC as a stock not worth researching with its 26.7x 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.
View our latest analysis for NEXTDC
