Is DSC Investment's (KOSDAQ:241520) 108% Share Price Increase Well Justified?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the DSC Investment Inc. (KOSDAQ:241520) share price has soared 108% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 58% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. It is also impressive that the stock is up 39% over three years, adding to the sense that it is a real winner.

Check out our latest analysis for DSC Investment

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year DSC Investment grew its earnings per share (EPS) by 69%. The share price gain of 108% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

This free interactive report on DSC Investment's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, DSC Investment's total shareholder return last year was 108%. That gain actually surpasses the 11% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting DSC Investment on your watchlist. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - DSC Investment has 1 warning sign we think you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on KR exchanges.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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