HEXO - Setting Targets based on Price to Sales Ratio It's worthwhile to learn PS Ratios, it is a fundamental that helps investors compare companies within a sector and a good way to measure where a company stands on it's path to profitability.
As sales go up the PS ratio dips down then, as the SP goes up so does the PS ratio. The PS ratio data is always based on the last QTR report so you need to consider where you think sales for a company will be heading over time and how the next QTR report will change the formula.
HEXO currently has a PS Ratio of around 10, average of around 55 and all time high of 244.
Based on the PS Ratio data, combined with what I expect will be increasing sales QTR over QTR in the coming year(s) I see HEXO very much being a BUY and HOLD stock for those who are open to investing with longer timelines in mind and for those who can ride out the ups and downs we see in Cannabis stocks on a daily basis.
GLTA
Q
Link to HEXO PS Ratio Data
https://ycharts.com/companies/HEXO.TO/ps_ratio