What Sonos, Inc.’s (NASDAQ:SONO) 38% Share Price Gain Is Not Telling You
Sonos, Inc. (NASDAQ:SONO) shareholders are no doubt pleased to see that the share price has bounced 38% in the last month, although it is still struggling to make up recently lost ground. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 36% over that time.
In spite of the firm bounce in price, it’s still not a stretch to say that Sonos’ price-to-sales (or “P/S”) ratio of 0.9x right now seems quite “middle-of-the-road” compared to the Consumer Durables industry in the United States, where the median P/S ratio is around 0.6x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.
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