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    Surf Air Mobility Inc.'s (NYSE:SRFM) 32% Cheaper Price Remains In Tune With Revenues

    Simply Wall St·02/12/2026 10:36:55
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    Surf Air Mobility Inc. (NYSE:SRFM) shareholders won't be pleased to see that the share price has had a very rough month, dropping 32% and undoing the prior period's positive performance. For any long-term shareholders, the last month ends a year to forget by locking in a 60% share price decline.

    In spite of the heavy fall in price, given close to half the companies operating in the United States' Airlines industry have price-to-sales ratios (or "P/S") below 0.6x, you may still consider Surf Air Mobility as a stock to potentially avoid with its 1.2x P/S ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.

    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 Surf Air Mobility

    ps-multiple-vs-industry
    NYSE:SRFM Price to Sales Ratio vs Industry February 12th 2026

    How Surf Air Mobility Has Been Performing

    Surf Air Mobility hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. Perhaps the market is expecting the poor revenue to reverse, justifying it's current high P/S.. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

    Keen to find out how analysts think Surf Air Mobility's future stacks up against the industry? In that case, our free report is a great place to start.

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

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

    In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 8.5%. Spectacularly, three year revenue growth has ballooned by several orders of magnitude, despite the drawbacks experienced in the last 12 months. Therefore, it's fair to say the revenue growth recently has been superb for the company, but investors will want to ask why it is now in decline.

    Looking ahead now, revenue is anticipated to climb by 39% each year during the coming three years according to the three analysts following the company. That's shaping up to be materially higher than the 35% per year growth forecast for the broader industry.

    In light of this, it's understandable that Surf Air Mobility's P/S sits above the majority of other companies. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

    The Final Word

    Surf Air Mobility's P/S remain high even after its stock plunged. 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 Surf Air Mobility's analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. At this stage investors feel the potential for a deterioration in revenues is quite remote, justifying the elevated P/S ratio. Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant.

    There are also other vital risk factors to consider and we've discovered 4 warning signs for Surf Air Mobility (2 are concerning!) that you should be aware of before investing here.

    If you're unsure about the strength of Surf Air Mobility's business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.