![]() At least the risk of a price drop looks to be subdued, but investors seem to think future revenue could see some volatility. Perhaps uncertainty in the revenue forecasts are what's keeping the P/S ratio consistent with the rest of the industry. That's shaping up to be materially higher than the 33% per annum growth forecast for the broader industry.ĭespite enticing revenue growth figures that outpace the industry, Stem's P/S isn't quite what we'd expect. Looking ahead now, revenue is anticipated to climb by 42% per year during the coming three years according to the analysts following the company. ![]() So we can start by confirming that the company has done a tremendous job of growing revenue over that time. Spectacularly, three year revenue growth has ballooned by several orders of magnitude, thanks in part to the last 12 months of revenue growth. Taking a look back first, we see that the company grew revenue by an impressive 185% last year. The only time you'd be comfortable seeing a P/S like Stem's is when the company's growth is tracking the industry closely. ![]() Do Revenue Forecasts Match The P/S Ratio? If you'd like to see what analysts are forecasting going forward, you should check out our free report on Stem. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price. Perhaps the market is expecting this level of performance to taper off, keeping the P/S from soaring. Recent times have been advantageous for Stem as its revenues have been rising faster than most other companies. Ps-multiple-vs-industry What Does Stem's Recent Performance Look Like?
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