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Investors Interested In VisasQ Inc.'s (TSE:4490) Revenues

Simply Wall St · 07/16 21:44

It's not a stretch to say that VisasQ Inc.'s (TSE:4490) price-to-sales (or "P/S") ratio of 0.7x right now seems quite "middle-of-the-road" for companies in the Professional Services industry in Japan, where the median P/S ratio is around 1x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake.

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See our latest analysis for VisasQ

ps-multiple-vs-industry
TSE:4490 Price to Sales Ratio vs Industry July 16th 2025

How Has VisasQ Performed Recently?

There hasn't been much to differentiate VisasQ's and the industry's revenue growth lately. The P/S ratio is probably moderate because investors think this modest revenue performance will continue. If you like the company, you'd be hoping this can at least be maintained so that you could pick up some stock while it's not quite in favour.

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

Is There Some Revenue Growth Forecasted For VisasQ?

In order to justify its P/S ratio, VisasQ would need to produce growth that's similar to the industry.

If we review the last year of revenue growth, the company posted a worthy increase of 9.1%. Pleasingly, revenue has also lifted 164% in aggregate from three years ago, partly thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.

Looking ahead now, revenue is anticipated to climb by 8.5% per year during the coming three years according to the lone analyst following the company. With the industry predicted to deliver 8.8% growth per annum, the company is positioned for a comparable revenue result.

With this in mind, it makes sense that VisasQ's P/S is closely matching its industry peers. It seems most investors are expecting to see average future growth and are only willing to pay a moderate amount for the stock.

The Key Takeaway

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.

A VisasQ's P/S seems about right to us given the knowledge that analysts are forecasting a revenue outlook that is similar to the Professional Services industry. At this stage investors feel the potential for an improvement or deterioration in revenue isn't great enough to push P/S in a higher or lower direction. Unless these conditions change, they will continue to support the share price at these levels.

You should always think about risks. Case in point, we've spotted 2 warning signs for VisasQ you should be aware of.

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.