This month, we saw the TravelSky Technology Limited (HKG:696) up an impressive 32%. But over the last half decade, the stock has not performed well. In fact, the share price is down 32%, which falls well short of the return you could get by buying an index fund.
Since TravelSky Technology has shed HK$1.8b from its value in the past 7 days, let’s see if the longer term decline has been driven by the business’ economics.
See our latest analysis for TravelSky Technology
To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During the five years over which the share price declined, TravelSky Technology’s earnings per share (EPS) dropped by 8.2% each year. Notably, the share price…
