Jet.AI Inc. (NASDAQ:JTAI) shareholders won't be pleased to see that the share price has had a very rough month, dropping 29% and undoing the prior period's positive performance. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 98% loss during that time.

Even after such a large drop in price, there still wouldn't be many who think Jet.AI's price-to-sales (or "P/S") ratio of 0.6x is worth a mention when the median P/S in the United States' Airlines industry is similar at about 0.5x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

View our latest analysis for Jet.AI

How Has Jet.AI Performed Recently?

Jet.AI certainly has been doing a good job lately as it's been growing revenue more than most other companies. One possibility is that the P/S ratio is moderate because investors think this strong revenue performance might be about to tail off. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's not quite in favour.

Keen to find out how analysts think Jet.AI's future stacks up against the industry? In that case, our free report is a great place to start.

Is There Some Revenue Growth Forecasted For Jet.AI?

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

If we review the last year of revenue growth, the company posted a terrific increase of 47%. The latest three year period has also seen an incredible overall rise in revenue, aided by its incredible short-term performance. So we can start by confirming that the company has done a tremendous job of growing revenue over that time.

Turning to the outlook, the next year should generate growth of 4.1% as estimated by the sole analyst watching the company. That's shaping up to be materially lower than the 318% growth forecast for the broader industry.

With this in mind, we find it intriguing that Jet.AI's P/S is closely matching its industry peers. Apparently many investors in the company are less bearish than analysts indicate and aren't willing to let go of their stock right now. These shareholders may be setting themselves up for future disappointment if the P/S falls to levels more in line with the growth outlook.

The Bottom Line On Jet.AI's P/S

With its share price dropping off a cliff, the P/S for Jet.AI looks to be in line with the rest of the Airlines industry. It's argued the price-to-sales ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.

Our look at the analysts forecasts of Jet.AI's revenue prospects has shown that its inferior revenue outlook isn't negatively impacting its P/S as much as we would have predicted. At present, we aren't confident in the P/S as the predicted future revenues aren't likely to support a more positive sentiment for long. Circumstances like this present a risk to current and prospective investors who may see share prices fall if the low revenue growth impacts the sentiment.

Plus, you should also learn about these 5 warning signs we've spotted with Jet.AI (including 4 which are a bit unpleasant).

If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).

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