Can You Imagine How Elated D&C MediaLtd's (KOSDAQ:263720) Shareholders Feel About Its 315% Share Price Gain?

D&C Media Co.,Ltd. (KOSDAQ:263720) shareholders might be concerned after seeing the share price drop 17% in the last quarter. But that doesn't displace its brilliant performance over three years. In fact, the share price has taken off in that time, up 315%. Arguably, the recent fall is to be expected after such a strong rise. The share price action could signify that the business itself is dramatically improved, in that time.

Check out our latest analysis for D&C MediaLtd

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

D&C MediaLtd was able to grow its EPS at 16% per year over three years, sending the share price higher. In comparison, the 61% per year gain in the share price outpaces the EPS growth. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. It's not unusual to see the market 're-rate' a stock, after a few years of growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 54.97.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that D&C MediaLtd has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

A Different Perspective

Pleasingly, D&C MediaLtd's total shareholder return last year was 122%. That's better than the annualized TSR of 61% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting D&C MediaLtd 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. For instance, we've identified 1 warning sign for D&C MediaLtd that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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