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    With A 36% Price Drop For Eightco Holdings Inc. (NASDAQ:ORBS) You'll Still Get What You Pay For

    Simply Wall St·12/29/2025 11:19:37
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    To the annoyance of some shareholders, Eightco Holdings Inc. (NASDAQ:ORBS) shares are down a considerable 36% in the last month, which continues a horrid run for the company. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 35% share price drop.

    Even after such a large drop in price, when almost half of the companies in the United States' Packaging industry have price-to-sales ratios (or "P/S") below 1x, you may still consider Eightco Holdings as a stock not worth researching with its 7.6x 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 so lofty.

    We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

    See our latest analysis for Eightco Holdings

    ps-multiple-vs-industry
    NasdaqCM:ORBS Price to Sales Ratio vs Industry December 29th 2025

    What Does Eightco Holdings' P/S Mean For Shareholders?

    Recent times have been quite advantageous for Eightco Holdings as its revenue has been rising very briskly. The P/S ratio is probably high because investors think this strong revenue growth will be enough to outperform the broader industry in the near future. If not, then existing shareholders might 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 Eightco Holdings' earnings, revenue and cash flow.

    Do Revenue Forecasts Match The High P/S Ratio?

    Eightco Holdings' P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry.

    If we review the last year of revenue growth, the company posted a terrific increase of 59%. The strong recent performance means it was also able to grow revenue by 141% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenue over that time.

    This is in contrast to the rest of the industry, which is expected to grow by 7.6% over the next year, materially lower than the company's recent medium-term annualised growth rates.

    With this in consideration, it's not hard to understand why Eightco Holdings' P/S is high relative to its industry peers. It seems most investors are expecting this strong growth to continue and are willing to pay more for the stock.

    The Key Takeaway

    Even after such a strong price drop, Eightco Holdings' P/S still exceeds the industry median significantly. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.

    We've established that Eightco Holdings maintains its high P/S on the strength of its recent three-year growth being higher than the wider industry forecast, as expected. In the eyes of shareholders, the probability of a continued growth trajectory is great enough to prevent the P/S from pulling back. Unless the recent medium-term conditions change, they will continue to provide strong support to the share price.

    There are also other vital risk factors to consider before investing and we've discovered 3 warning signs for Eightco Holdings that you should be aware of.

    Of course, profitable companies with a history of great earnings growth are generally safer bets. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.