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    Take Care Before Jumping Onto Wiser Technology AD (BUL:WISR) Even Though It's 49% Cheaper

    Simply Wall St·01/02/2026 04:34:31
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    Wiser Technology AD (BUL:WISR) shareholders that were waiting for something to happen have been dealt a blow with a 49% share price drop in the last month. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 56% loss during that time.

    After such a large drop in price, Wiser Technology AD may be sending buy signals at present with its price-to-sales (or "P/S") ratio of 1.2x, considering almost half of all companies in the Software industry in Bulgaria have P/S ratios greater than 2.4x and even P/S higher than 6x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's limited.

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    See our latest analysis for Wiser Technology AD

    ps-multiple-vs-industry
    BUL:WISR Price to Sales Ratio vs Industry January 2nd 2026

    How Has Wiser Technology AD Performed Recently?

    Wiser Technology AD 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 that doesn't eventuate, then existing shareholders have reason to be quite optimistic about the future direction of the share price.

    Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Wiser Technology AD will help you shine a light on its historical performance.

    Do Revenue Forecasts Match The Low P/S Ratio?

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

    Retrospectively, the last year delivered an explosive gain to the company's top line. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.

    When compared to the industry's one-year growth forecast of 9.5%, the most recent medium-term revenue trajectory is noticeably more alluring

    With this information, we find it odd that Wiser Technology AD is trading at a P/S lower than the industry. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.

    What We Can Learn From Wiser Technology AD's P/S?

    Wiser Technology AD's recently weak share price has pulled its P/S back below other Software companies. 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.

    We're very surprised to see Wiser Technology AD currently trading on a much lower than expected P/S since its recent three-year growth is higher than the wider industry forecast. Potential investors that are sceptical over continued revenue performance may be preventing the P/S ratio from matching previous strong performance. At least price risks look to be very low if recent medium-term revenue trends continue, but investors seem to think future revenue could see a lot of volatility.

    It's always necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Wiser Technology AD (at least 2 which are a bit unpleasant), and understanding them should be part of your investment process.

    If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.