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    DHAUTOWARE Co., LTD (KOSDAQ:025440) Looks Just Right With A 38% Price Jump

    Simply Wall St·01/07/2026 21:43:14
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    DHAUTOWARE Co., LTD (KOSDAQ:025440) shares have had a really impressive month, gaining 38% after a shaky period beforehand. Looking further back, the 16% rise over the last twelve months isn't too bad notwithstanding the strength over the last 30 days.

    Although its price has surged higher, you could still be forgiven for feeling indifferent about DHAUTOWARE's P/S ratio of 0.1x, since the median price-to-sales (or "P/S") ratio for the Consumer Durables industry in Korea is also close to 0.5x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

    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.

    View our latest analysis for DHAUTOWARE

    ps-multiple-vs-industry
    KOSDAQ:A025440 Price to Sales Ratio vs Industry January 7th 2026

    What Does DHAUTOWARE's Recent Performance Look Like?

    DHAUTOWARE has been doing a good job lately as it's been growing revenue at a solid pace. One possibility is that the P/S is moderate because investors think this respectable revenue growth might not be enough to outperform the broader industry in the near future. 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 not quite in favour.

    Although there are no analyst estimates available for DHAUTOWARE, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

    Do Revenue Forecasts Match The P/S Ratio?

    There's an inherent assumption that a company should be matching the industry for P/S ratios like DHAUTOWARE's to be considered reasonable.

    If we review the last year of revenue growth, the company posted a terrific increase of 21%. Revenue has also lifted 20% in aggregate from three years ago, mostly thanks to the last 12 months of growth. Accordingly, shareholders would have probably been satisfied with the medium-term rates of revenue growth.

    It's interesting to note that the rest of the industry is similarly expected to grow by 5.3% over the next year, which is fairly even with the company's recent medium-term annualised growth rates.

    With this information, we can see why DHAUTOWARE is trading at a fairly similar P/S to the industry. It seems most investors are expecting to see average growth rates continue into the future and are only willing to pay a moderate amount for the stock.

    The Bottom Line On DHAUTOWARE's P/S

    Its shares have lifted substantially and now DHAUTOWARE's P/S is back within range of the industry median. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

    As we've seen, DHAUTOWARE's three-year revenue trends seem to be contributing to its P/S, given they look similar to current industry expectations. Right now shareholders are comfortable with the P/S as they are quite confident future revenue won't throw up any surprises. Unless the recent medium-term conditions change, they will continue to support the share price at these levels.

    You need to take note of risks, for example - DHAUTOWARE has 4 warning signs (and 2 which are a bit concerning) we think you should know about.

    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).