KN P/S Ratio

Knowles corporation (KN) 2025Q3 financial report shows the price-to-sales ratio is 3.49, higher than the past 5-year average. This indicates the market has high expectations for the company’s revenue growth potential, but it also means the stock price already reflects high growth forecasts and a premium. In such cases, it is recommended to not only monitor current revenue data but also track recent changes in the price-to-sales ratio and whether revenue growth can remain high, to avoid a disconnect between valuation and fundamentals. Additionally, comparing the company’s price-to-sales ratio and revenue growth rate with peers can help determine whether this premium is an industry-wide phenomenon or a unique advantage. If revenue growth slows or the industry enters a mature phase, an overly high price-to-sales ratio can easily lead to subsequent valuation corrections and pullbacks.