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    Optimistic Investors Push ALT Co., Ltd (KOSDAQ:172670) Shares Up 26% But Growth Is Lacking

    Simply Wall St·01/03/2026 23:22:50
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    The ALT Co., Ltd (KOSDAQ:172670) share price has done very well over the last month, posting an excellent gain of 26%. Looking back a bit further, it's encouraging to see the stock is up 40% in the last year.

    After such a large jump in price, given close to half the companies operating in Korea's Semiconductor industry have price-to-sales ratios (or "P/S") below 1.7x, you may consider ALT as a stock to potentially avoid with its 2.7x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.

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    See our latest analysis for ALT

    ps-multiple-vs-industry
    KOSDAQ:A172670 Price to Sales Ratio vs Industry January 3rd 2026

    What Does ALT's P/S Mean For Shareholders?

    The revenue growth achieved at ALT over the last year would be more than acceptable for most companies. It might be that many expect the respectable revenue performance to beat most other companies over the coming period, which has increased investors’ willingness to pay up for the stock. If not, then existing shareholders may be a little nervous about the viability of the share price.

    We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on ALT's earnings, revenue and cash flow.

    Do Revenue Forecasts Match The High P/S Ratio?

    ALT's P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

    Taking a look back first, we see that the company managed to grow revenues by a handy 13% last year. The latest three year period has also seen a 8.1% overall rise in revenue, aided somewhat by its short-term performance. So we can start by confirming that the company has actually done a good job of growing revenue over that time.

    Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 53% shows it's noticeably less attractive.

    With this information, we find it concerning that ALT is trading at a P/S higher than the industry. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as a continuation of recent revenue trends is likely to weigh heavily on the share price eventually.

    The Bottom Line On ALT's P/S

    ALT's P/S is on the rise since its shares have risen strongly. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

    The fact that ALT currently trades on a higher P/S relative to the industry is an oddity, since its recent three-year growth is lower than the wider industry forecast. When we see slower than industry revenue growth but an elevated P/S, there's considerable risk of the share price declining, sending the P/S lower. Unless there is a significant improvement in the company's medium-term performance, it will be difficult to prevent the P/S ratio from declining to a more reasonable level.

    Before you take the next step, you should know about the 4 warning signs for ALT (2 don't sit too well with us!) that we have uncovered.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.