• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Innoviz Technologies Ltd.'s (NASDAQ:INVZ) Share Price Is Still Matching Investor Opinion Despite 25% Slump

    Simply Wall St·12/28/2025 12:43:31
    Listen to the news

    Unfortunately for some shareholders, the Innoviz Technologies Ltd. (NASDAQ:INVZ) share price has dived 25% in the last thirty days, prolonging recent pain. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 47% share price drop.

    Although its price has dipped substantially, when almost half of the companies in the United States' Electronic industry have price-to-sales ratios (or "P/S") below 2.7x, you may still consider Innoviz Technologies as a stock probably not worth researching with its 4.1x 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.

    Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

    See our latest analysis for Innoviz Technologies

    ps-multiple-vs-industry
    NasdaqCM:INVZ Price to Sales Ratio vs Industry December 28th 2025

    What Does Innoviz Technologies' P/S Mean For Shareholders?

    With revenue growth that's superior to most other companies of late, Innoviz Technologies has been doing relatively well. It seems that many are expecting the strong revenue performance to persist, which has raised the P/S. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

    If you'd like to see what analysts are forecasting going forward, you should check out our free report on Innoviz Technologies.

    Is There Enough Revenue Growth Forecasted For Innoviz Technologies?

    The only time you'd be truly comfortable seeing a P/S as high as Innoviz Technologies' is when the company's growth is on track to outshine the industry.

    Taking a look back first, we see that the company grew revenue by an impressive 46% last year. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.

    Shifting to the future, estimates from the three analysts covering the company suggest revenue should grow by 74% per year over the next three years. Meanwhile, the rest of the industry is forecast to only expand by 14% per year, which is noticeably less attractive.

    With this information, we can see why Innoviz Technologies is trading at such a high P/S compared to the industry. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.

    What Does Innoviz Technologies' P/S Mean For Investors?

    There's still some elevation in Innoviz Technologies' P/S, even if the same can't be said for its share price recently. 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.

    Our look into Innoviz Technologies shows that its P/S ratio remains high on the merit of its strong future revenues. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. It's hard to see the share price falling strongly in the near future under these circumstances.

    It is also worth noting that we have found 2 warning signs for Innoviz Technologies that you need to take into consideration.

    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).