WEBULL

Sapporo Holdings Limited (TSE:2501) Not Flying Under The Radar

Simply Wall St · 2d ago

With a median price-to-sales (or "P/S") ratio of close to 0.9x in the Beverage industry in Japan, you could be forgiven for feeling indifferent about Sapporo Holdings Limited's (TSE:2501) P/S ratio of 1.2x. 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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See our latest analysis for Sapporo Holdings

ps-multiple-vs-industry
TSE:2501 Price to Sales Ratio vs Industry December 18th 2025

What Does Sapporo Holdings' Recent Performance Look Like?

Sapporo Holdings could be doing better as it's been growing revenue less than most other companies lately. It might be that many expect the uninspiring revenue performance to strengthen positively, which has kept the P/S ratio from falling. If not, then existing shareholders may be a little nervous about the viability of the share price.

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

Do Revenue Forecasts Match The P/S Ratio?

The only time you'd be comfortable seeing a P/S like Sapporo Holdings' is when the company's growth is tracking the industry closely.

Retrospectively, the last year delivered virtually the same number to the company's top line as the year before. Regardless, revenue has managed to lift by a handy 11% in aggregate from three years ago, thanks to the earlier period of growth. Therefore, it's fair to say that revenue growth has been inconsistent recently for the company.

Looking ahead now, revenue is anticipated to climb by 3.5% during the coming year according to the three analysts following the company. With the industry predicted to deliver 2.7% growth , the company is positioned for a comparable revenue result.

With this information, we can see why Sapporo Holdings is trading at a fairly similar P/S to the industry. Apparently shareholders are comfortable to simply hold on while the company is keeping a low profile.

The Bottom Line On Sapporo Holdings' P/S

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.

A Sapporo Holdings' P/S seems about right to us given the knowledge that analysts are forecasting a revenue outlook that is similar to the Beverage 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. All things considered, if the P/S and revenue estimates contain no major shocks, then it's hard to see the share price moving strongly in either direction in the near future.

It is also worth noting that we have found 3 warning signs for Sapporo Holdings that you need to take into consideration.

If you're unsure about the strength of Sapporo Holdings' business, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.