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More Unpleasant Surprises Could Be In Store For Jet.AI Inc.'s (NASDAQ:JTAI) Shares After Tumbling 32%

Simply Wall St · 2d ago

To the annoyance of some shareholders, Jet.AI Inc. (NASDAQ:JTAI) shares are down a considerable 32% in the last month, which continues a horrid run for the company. For any long-term shareholders, the last month ends a year to forget by locking in a 68% share price decline.

Even after such a large drop in price, there still wouldn't be many who think Jet.AI's price-to-sales (or "P/S") ratio of 0.5x is worth a mention when the median P/S in the United States' Airlines industry is similar at about 0.6x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

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Check out our latest analysis for Jet.AI

ps-multiple-vs-industry
NasdaqCM:JTAI Price to Sales Ratio vs Industry December 13th 2025

What Does Jet.AI's Recent Performance Look Like?

Jet.AI hasn't been tracking well recently as its declining revenue compares poorly to other companies, which have seen some growth in their revenues on average. Perhaps the market is expecting its poor revenue performance to improve, keeping the P/S from dropping. You'd really hope so, otherwise you're paying a relatively elevated price for a company with this sort of growth profile.

If you'd like to see what analysts are forecasting going forward, you should check out our free report on Jet.AI.

Is There Some Revenue Growth Forecasted For Jet.AI?

Jet.AI's P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

Retrospectively, the last year delivered a frustrating 30% decrease to the company's top line. As a result, revenue from three years ago have also fallen 47% overall. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

Shifting to the future, estimates from the one analyst covering the company suggest revenue growth is heading into negative territory, declining 50% over the next year. That's not great when the rest of the industry is expected to grow by 38%.

In light of this, it's somewhat alarming that Jet.AI's P/S sits in line with the majority of other companies. Apparently many investors in the company reject the analyst cohort's pessimism and aren't willing to let go of their stock right now. There's a good chance these shareholders are setting themselves up for future disappointment if the P/S falls to levels more in line with the negative growth outlook.

The Key Takeaway

With its share price dropping off a cliff, the P/S for Jet.AI looks to be in line with the rest of the Airlines industry. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

While Jet.AI's P/S isn't anything out of the ordinary for companies in the industry, we didn't expect it given forecasts of revenue decline. When we see a gloomy outlook like this, our immediate thoughts are that the share price is at risk of declining, negatively impacting P/S. If the declining revenues were to materialize in the form of a declining share price, shareholders will be feeling the pinch.

And what about other risks? Every company has them, and we've spotted 4 warning signs for Jet.AI (of which 2 are significant!) you should know about.

If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.