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    YoungWoo DSP Co.,Ltd (KOSDAQ:143540) Held Back By Insufficient Growth Even After Shares Climb 25%

    Simply Wall St·12/30/2025 21:40:23
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    YoungWoo DSP Co.,Ltd (KOSDAQ:143540) shareholders have had their patience rewarded with a 25% share price jump in the last month. The last 30 days bring the annual gain to a very sharp 43%.

    Even after such a large jump in price, YoungWoo DSPLtd's price-to-sales (or "P/S") ratio of 0.6x might still make it look like a buy right now compared to the Semiconductor industry in Korea, where around half of the companies have P/S ratios above 1.6x and even P/S above 4x are quite common. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.

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    Check out our latest analysis for YoungWoo DSPLtd

    ps-multiple-vs-industry
    KOSDAQ:A143540 Price to Sales Ratio vs Industry December 30th 2025

    How Has YoungWoo DSPLtd Performed Recently?

    YoungWoo DSPLtd certainly has been doing a great job lately as it's been growing its revenue at a really rapid pace. It might be that many expect the strong revenue performance to degrade substantially, which has repressed the P/S ratio. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.

    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 YoungWoo DSPLtd's earnings, revenue and cash flow.

    What Are Revenue Growth Metrics Telling Us About The Low P/S?

    In order to justify its P/S ratio, YoungWoo DSPLtd would need to produce sluggish growth that's trailing the industry.

    Taking a look back first, we see that the company grew revenue by an impressive 45% last year. The latest three year period has also seen a 28% overall rise in revenue, aided extensively by its short-term performance. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.

    Comparing that to the industry, which is predicted to deliver 50% growth in the next 12 months, the company's momentum is weaker, based on recent medium-term annualised revenue results.

    With this information, we can see why YoungWoo DSPLtd is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on to something they believe will continue to trail the wider industry.

    The Bottom Line On YoungWoo DSPLtd's P/S

    Despite YoungWoo DSPLtd's share price climbing recently, its P/S still lags most other companies. Generally, our preference is to limit the use of the price-to-sales ratio to establishing what the market thinks about the overall health of a company.

    As we suspected, our examination of YoungWoo DSPLtd revealed its three-year revenue trends are contributing to its low P/S, given they look worse than current industry expectations. At this stage investors feel the potential for an improvement in revenue isn't great enough to justify a higher P/S ratio. If recent medium-term revenue trends continue, it's hard to see the share price experience a reversal of fortunes anytime soon.

    It's always necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with YoungWoo DSPLtd, and understanding these should be part of your investment process.

    If these risks are making you reconsider your opinion on YoungWoo DSPLtd, explore our interactive list of high quality stocks to get an idea of what else is out there.