WEBULL

Abpro Bio Co., Ltd.'s (KOSDAQ:195990) Popularity With Investors Under Threat As Stock Sinks 31%

Simply Wall St · 6d ago

Abpro Bio Co., Ltd. (KOSDAQ:195990) shares have retraced a considerable 31% in the last month, reversing a fair amount of their solid recent performance. For any long-term shareholders, the last month ends a year to forget by locking in a 54% share price decline.

In spite of the heavy fall in price, there still wouldn't be many who think Abpro Bio's price-to-sales (or "P/S") ratio of 1.6x is worth a mention when the median P/S in Korea's Machinery industry is similar at about 1.2x. 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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View our latest analysis for Abpro Bio

ps-multiple-vs-industry
KOSDAQ:A195990 Price to Sales Ratio vs Industry January 6th 2026

What Does Abpro Bio's P/S Mean For Shareholders?

Recent times have been quite advantageous for Abpro Bio as its revenue has been rising very briskly. The P/S is probably moderate because investors think this strong revenue growth might not be enough to outperform the broader industry in the near future. If that doesn't eventuate, then existing shareholders have reason to be feeling optimistic about the future direction of the share price.

Although there are no analyst estimates available for Abpro Bio, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

How Is Abpro Bio's Revenue Growth Trending?

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

Taking a look back first, we see that the company grew revenue by an impressive 32% last year. The strong recent performance means it was also able to grow revenue by 76% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenue over that time.

Comparing the recent medium-term revenue trends against the industry's one-year growth forecast of 25% shows it's noticeably less attractive.

In light of this, it's curious that Abpro Bio's P/S sits in line with the majority of other companies. Apparently many investors in the company are less bearish than recent times would indicate and aren't willing to let go of their stock right now. Maintaining these prices will be difficult to achieve as a continuation of recent revenue trends is likely to weigh down the shares eventually.

The Key Takeaway

Following Abpro Bio's share price tumble, its P/S is just clinging on to the industry median P/S. Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects.

Our examination of Abpro Bio revealed its poor three-year revenue trends aren't resulting in a lower P/S as per our expectations, given they look worse than current industry outlook. When we see weak revenue with slower than industry growth, we suspect the share price is at risk of declining, bringing the P/S back in line with expectations. Unless the recent medium-term conditions improve, it's hard to accept the current share price as fair value.

Don't forget that there may be other risks. For instance, we've identified 4 warning signs for Abpro Bio (3 are concerning) you should be aware of.

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.