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    There's Reason For Concern Over TradeGo FinTech Limited's (HKG:8017) Massive 39% Price Jump

    Simply Wall St·01/02/2026 22:31:19
    語音播報

    Those holding TradeGo FinTech Limited (HKG:8017) shares would be relieved that the share price has rebounded 39% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. This latest share price bounce rounds out a remarkable 672% gain over the last twelve months.

    After such a large jump in price, TradeGo FinTech may be sending bearish signals at the moment with its price-to-sales (or "P/S") ratio of 6.8x, since almost half of all companies in the Capital Markets in Hong Kong have P/S ratios under 4.5x and even P/S lower than 1.9x are not unusual. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.

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    Check out our latest analysis for TradeGo FinTech

    ps-multiple-vs-industry
    SEHK:8017 Price to Sales Ratio vs Industry January 2nd 2026

    How TradeGo FinTech Has Been Performing

    Recent times have been advantageous for TradeGo FinTech as its revenues have been rising faster than most other companies. It seems the market expects this form will continue into the future, hence the elevated P/S ratio. However, if this isn't the case, investors might get caught out paying too much for the stock.

    Want the full picture on analyst estimates for the company? Then our free report on TradeGo FinTech will help you uncover what's on the horizon.

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

    TradeGo FinTech's P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

    If we review the last year of revenue growth, the company posted a terrific increase of 146%. The strong recent performance means it was also able to grow revenue by 80% 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.

    Looking ahead now, revenue is anticipated to climb by 4.5% during the coming year according to the one analyst following the company. Meanwhile, the rest of the industry is forecast to expand by 15%, which is noticeably more attractive.

    With this information, we find it concerning that TradeGo FinTech is trading at a P/S higher than the industry. It seems most investors are hoping for a turnaround in the company's business prospects, but the analyst cohort is not so confident this will happen. Only the boldest would assume these prices are sustainable as this level of revenue growth is likely to weigh heavily on the share price eventually.

    The Bottom Line On TradeGo FinTech's P/S

    TradeGo FinTech's P/S is on the rise since its shares have risen strongly. 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 concluded that TradeGo FinTech currently trades on a much higher than expected P/S since its forecast growth is lower than the wider industry. The weakness in the company's revenue estimate doesn't bode well for the elevated P/S, which could take a fall if the revenue sentiment doesn't improve. This places shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.

    Before you take the next step, you should know about the 3 warning signs for TradeGo FinTech (1 is concerning!) that we have uncovered.

    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.