Market Might Still Lack Some Conviction On D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Even After 27% Share Price Boost

D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) shareholders have had their patience rewarded with a 27% share price jump in the last month. The last month tops off a massive increase of 134% in the last year.

Although its price has surged higher, there still wouldn't be many who think D-Market Elektronik Hizmetler ve Ticaret's price-to-sales (or "P/S") ratio of 0.7x is worth a mention when it essentially matches the median P/S in the United States' Multiline Retail industry. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

View our latest analysis for D-Market Elektronik Hizmetler ve Ticaret

What Does D-Market Elektronik Hizmetler ve Ticaret's Recent Performance Look Like?

D-Market Elektronik Hizmetler ve Ticaret certainly has been doing a good job lately as it's been growing revenue more than most other companies. One possibility is that the P/S ratio is moderate because investors think this strong revenue performance might be about to tail off. If the company manages to stay the course, then investors should be rewarded with a share price that matches its revenue figures.

Want the full picture on analyst estimates for the company? Then our free report on D-Market Elektronik Hizmetler ve Ticaret will help you uncover what's on the horizon.

How Is D-Market Elektronik Hizmetler ve Ticaret's Revenue Growth Trending?

In order to justify its P/S ratio, D-Market Elektronik Hizmetler ve Ticaret would need to produce growth that's similar to the industry.

If we review the last year of revenue growth, the company posted a terrific increase of 172%. Pleasingly, revenue has also lifted 44% 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.

Shifting to the future, estimates from the three analysts covering the company suggest revenue should grow by 55% over the next year. Meanwhile, the rest of the industry is forecast to only expand by 15%, which is noticeably less attractive.

With this in consideration, we find it intriguing that D-Market Elektronik Hizmetler ve Ticaret's P/S is closely matching its industry peers. It may be that most investors aren't convinced the company can achieve future growth expectations.

What We Can Learn From D-Market Elektronik Hizmetler ve Ticaret's P/S?

Its shares have lifted substantially and now D-Market Elektronik Hizmetler ve Ticaret's P/S is back within range of the industry median. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Despite enticing revenue growth figures that outpace the industry, D-Market Elektronik Hizmetler ve Ticaret's P/S isn't quite what we'd expect. There could be some risks that the market is pricing in, which is preventing the P/S ratio from matching the positive outlook. However, if you agree with the analysts' forecasts, you may be able to pick up the stock at an attractive price.

It is also worth noting that we have found 1 warning sign for D-Market Elektronik Hizmetler ve Ticaret that you need to take into consideration.

If these risks are making you reconsider your opinion on D-Market Elektronik Hizmetler ve Ticaret, explore our interactive list of high quality stocks to get an idea of what else is out there.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.