Posted 12/24/2023, 1:21:02 PM
Arlo Growth Forecasts Meet Skepticism Despite Competitive Valuation
- Arlo Technologies' price-to-sales ratio of 1.9x is in line with the industry median of 1.7x, but revenue has declined 7.8% last year even as the industry grew
- Forecasts estimate Arlo's revenue will grow 9.4% next year, faster than the industry's 6.7%
- Despite the better growth outlook, Arlo's price-to-sales ratio remains similar to the industry
- The market seems skeptical of Arlo's growth forecasts, pricing in risks that could prevent it from meeting projections
- Arlo's share price could be higher given its strong expected revenue growth, but risks like recent revenue declines may be concerning investors