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    The Market Lifts LTC Co.,Ltd (KOSDAQ:170920) Shares 27% But It Can Do More

    Simply Wall St·01/03/2026 23:18:15
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    LTC Co.,Ltd (KOSDAQ:170920) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. The last month tops off a massive increase of 125% in the last year.

    In spite of the firm bounce in price, you could still be forgiven for feeling indifferent about LTCLtd's P/S ratio of 0.7x, since the median price-to-sales (or "P/S") ratio for the Chemicals industry in Korea is about the same. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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    Check out our latest analysis for LTCLtd

    ps-multiple-vs-industry
    KOSDAQ:A170920 Price to Sales Ratio vs Industry January 3rd 2026

    How LTCLtd Has Been Performing

    LTCLtd certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. It might be that many expect the strong revenue performance to wane, which has kept the share price, and thus the P/S ratio, from rising. Those who are bullish on LTCLtd will be hoping that this isn't the case, so that they can pick up the stock at a lower valuation.

    Want the full picture on earnings, revenue and cash flow for the company? Then our free report on LTCLtd will help you shine a light on its historical performance.

    Is There Some Revenue Growth Forecasted For LTCLtd?

    LTCLtd's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

    Taking a look back first, we see that the company grew revenue by an impressive 42% last year. Pleasingly, revenue has also lifted 84% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.

    Comparing that recent medium-term revenue trajectory with the industry's one-year growth forecast of 14% shows it's noticeably more attractive.

    With this information, we find it interesting that LTCLtd is trading at a fairly similar P/S compared to the industry. It may be that most investors are not convinced the company can maintain its recent growth rates.

    The Final Word

    LTCLtd appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

    To our surprise, LTCLtd revealed its three-year revenue trends aren't contributing to its P/S as much as we would have predicted, given they look better than current industry expectations. It'd be fair to assume that potential risks the company faces could be the contributing factor to the lower than expected P/S. At least the risk of a price drop looks to be subdued if recent medium-term revenue trends continue, but investors seem to think future revenue could see some volatility.

    There are also other vital risk factors to consider before investing and we've discovered 1 warning sign for LTCLtd that you should be aware of.

    It's important to make sure you look for a great company, not just the first idea you come across. So if growing profitability aligns with your idea of a great company, take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).