Opera Share Price Soars Despite Low Valuation Relative to Growth
• Opera share price has surged 29% over last month and 60% over last year, but its price-to-sales ratio of 3.2x is low compared to software industry average of 4.3x
• Revenue grew impressively by 20% last year and 140% over 3 years, and 14% annual growth expected over next 3 years
• Low P/S ratio seems at odds with strong past and forecast revenue growth matching the wider industry
• Stock price surge suggests investors see risks that could limit future growth despite analyst expectations
• Downside risk appears limited but P/S suggests revenue volatility could occur even with analyst growth forecasts