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A Piece Of The Puzzle Missing From ATRenew Inc.'s (NYSE:RERE) 39% Share Price Climb

Simply Wall St · 2d ago

ATRenew Inc. (NYSE:RERE) shares have had a really impressive month, gaining 39% after a shaky period beforehand. The last 30 days bring the annual gain to a very sharp 67%.

In spite of the firm bounce in price, there still wouldn't be many who think ATRenew's price-to-sales (or "P/S") ratio of 0.4x is worth a mention when the median P/S in the United States' Specialty Retail industry is similar at about 0.5x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/S.

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See our latest analysis for ATRenew

ps-multiple-vs-industry
NYSE:RERE Price to Sales Ratio vs Industry December 5th 2025

What Does ATRenew's Recent Performance Look Like?

With revenue growth that's superior to most other companies of late, ATRenew has been doing relatively well. One possibility is that the P/S ratio is moderate because investors think this strong revenue performance might be about to tail off. If not, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.

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

How Is ATRenew's Revenue Growth Trending?

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

Retrospectively, the last year delivered an exceptional 28% gain to the company's top line. Pleasingly, revenue has also lifted 111% in aggregate from three years ago, thanks to the last 12 months of growth. Accordingly, shareholders would have definitely welcomed those medium-term rates of revenue growth.

Shifting to the future, estimates from the three analysts covering the company suggest revenue should grow by 26% over the next year. That's shaping up to be materially higher than the 7.5% growth forecast for the broader industry.

In light of this, it's curious that ATRenew's P/S sits in line with the majority of other companies. Apparently some shareholders are skeptical of the forecasts and have been accepting lower selling prices.

The Bottom Line On ATRenew's P/S

ATRenew's stock has a lot of momentum behind it lately, which has brought its P/S level with the rest of the industry. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Despite enticing revenue growth figures that outpace the industry, ATRenew's P/S isn't quite what we'd expect. Perhaps uncertainty in the revenue forecasts are what's keeping the P/S ratio consistent with the rest of the industry. This uncertainty seems to be reflected in the share price which, while stable, could be higher given the revenue forecasts.

Many other vital risk factors can be found on the company's balance sheet. You can assess many of the main risks through our free balance sheet analysis for ATRenew with six simple checks.

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.