Woori Technology, Inc. (KOSDAQ:032820) shareholders would be excited to see that the share price has had a great month, posting a 62% gain and recovering from prior weakness. The last month tops off a massive increase of 198% in the last year.
Since its price has surged higher, when almost half of the companies in Korea’s Electronic industry have price-to-sales ratios (or “P/S”) below 0.8x, you may consider Woori Technology as a stock not worth researching with its 11.6x P/S ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/S.
Check out our latest analysis for Woori Technology
KOSDAQ:A032820 Price to Sales Ratio vs Industry January 19th 2026 What Does Woori Technology’s P/S Mean For Shareholders?
With revenue growth that’s exceedingly strong of late, Woori Technology has been doing very well. Perhaps the market is expecting future revenue performance to outperform the wider market, which has seemingly got people interested in the stock. If not, then existing shareholders might be a little nervous about the viability of the share price.
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Woori Technology will help you shine a light on its historical performance. How Is Woori Technology’s Revenue Growth Trending?
The only time you’d be truly comfortable seeing a P/S as steep as Woori Technology’s is when the company’s growth is on track to outshine the industry decidedly.
Retrospectively, the last year delivered an exceptional 39% gain to the company’s top line. Pleasingly, revenue has also lifted 63% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenue over that time.
This is in contrast to the rest of the industry, which is expected to grow by 25% over the next year, materially higher than the company’s recent medium-term annualised growth rates.
With this information, we find it concerning that Woori Technology is trading at a P/S higher than the industry. Apparently many investors in the company are way more bullish than recent times would indicate and aren’t willing to let go of their stock at any price. There’s a good chance existing shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with recent growth rates.
What Does Woori Technology’s P/S Mean For Investors?
The strong share price surge has lead to Woori Technology’s P/S soaring as well. 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.
The fact that Woori Technology currently trades on a higher P/S relative to the industry is an oddity, since its recent three-year growth is lower than the wider industry forecast. When we see slower than industry revenue growth but an elevated P/S, there’s considerable risk of the share price declining, sending the P/S lower. Unless the recent medium-term conditions improve markedly, it’s very challenging to accept these the share price as being reasonable.
It’s always necessary to consider the ever-present spectre of investment risk. We’ve identified 3 warning signs with Woori Technology (at least 2 which shouldn’t be ignored), and understanding them should be part of your investment process.
If strong companies turning a profit tickle your fancy, then you’ll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).
Discover if Woori Technology might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.