--- title: "With A 39% Price Drop For Planet Labs PBC (NYSE:PL) You'll Still Get What You Pay For" description: "Planet Labs PBC (NYSE:PL) shares dropped 39% this month but are still up 65% over the past year. The company's price-to-sales (P/S) ratio stands at 4.5x, significantly higher than the industry median " type: "news" locale: "en" url: "https://longbridge.com/en/news/231428733.md" published_at: "2025-03-11T20:11:26.000Z" --- # With A 39% Price Drop For Planet Labs PBC (NYSE:PL) You'll Still Get What You Pay For > Planet Labs PBC (NYSE:PL) shares dropped 39% this month but are still up 65% over the past year. The company's price-to-sales (P/S) ratio stands at 4.5x, significantly higher than the industry median of 1.3x, indicating investor confidence in its strong revenue growth. Analysts predict a 10% revenue increase for Planet Labs next year, outperforming the industry average of 7%. Despite the recent price decline, the high P/S suggests optimism about future performance, although potential warning signs should be noted. **Planet Labs PBC** (NYSE:PL) shares have had a horrible month, losing 39% after a relatively good period beforehand. Looking at the bigger picture, even after this poor month the stock is up 65% in the last year. In spite of the heavy fall in price, given around half the companies in the United States' Professional Services industry have price-to-sales ratios (or "P/S") below 1.3x, you may still consider Planet Labs PBC as a stock to avoid entirely with its 4.5x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified. See our latest analysis for Planet Labs PBC ### What Does Planet Labs PBC's P/S Mean For Shareholders? Recent times have been advantageous for Planet Labs PBC as its revenues have been rising faster than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. However, if this isn't the case, investors might get caught out paying too much for the stock. Want the full picture on analyst estimates for the company? Then our **free** report on Planet Labs PBC will help you uncover what's on the horizon. ## Do Revenue Forecasts Match The High P/S Ratio? Planet Labs PBC's P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry. Retrospectively, the last year delivered a decent 12% gain to the company's revenues. This was backed up an excellent period prior to see revenue up by 94% in total over the last three years. Therefore, it's fair to say the revenue growth recently has been superb for the company. Shifting to the future, estimates from the twelve analysts covering the company suggest revenue should grow by 10% over the next year. Meanwhile, the rest of the industry is forecast to only expand by 7.0%, which is noticeably less attractive. With this information, we can see why Planet Labs PBC is trading at such a high P/S compared to the industry. It seems most investors are expecting this strong future growth and are willing to pay more for the stock. ## What We Can Learn From Planet Labs PBC's P/S? Even after such a strong price drop, Planet Labs PBC's P/S still exceeds the industry median significantly. 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. As we suspected, our examination of Planet Labs PBC's analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Unless the analysts have really missed the mark, these strong revenue forecasts should keep the share price buoyant. Before you settle on your opinion, we've discovered **2 warning signs for Planet Labs PBC** that you should be aware of. It's important to **make sure you look for a great company, not just the first idea you come across.** So if growing profitability aligns with your idea of a great company, take a peek at this **free** list of interesting companies with strong recent earnings growth (and a low P/E). If you're looking to trade Planet Labs PBC, open an account with the lowest-cost platform trusted by professionals, Interactive Brokers. With clients in over 200 countries and territories, and access to 160 markets, IBKR lets you trade stocks, options, futures, forex, bonds and funds from a single integrated account. Enjoy no hidden fees, no account minimums, and FX conversion rates as low as 0.03%, far better than what most brokers offer. Sponsored Content ### Related Stocks - [PL.US - Planet Labs](https://longbridge.com/en/quote/PL.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | A Look At Planet Labs (PL) Valuation After AXA Partnership And New Advisory Boards | Planet Labs PBC has formed new advisory boards and partnered with AXA for disaster risk monitoring. Despite a recent 22. | [Link](https://longbridge.com/en/news/276015512.md) | | Planet Labs Stock Is Surging Today: What's Driving The Action? | Planet Labs shares surged 9.05% to $24.22 on Wednesday following a Schedule 13G/A filing revealing Driehaus Capital Mana | [Link](https://longbridge.com/en/news/276254318.md) | | Planet Labs PBC to Join Barclays and Citi Industrial Tech Conferences | Planet Labs PBC will participate in two investor events in February 2026. Robert Cardillo, Chief Strategist and Chairman | [Link](https://longbridge.com/en/news/275660825.md) | | Planet Labs (PL) Is Up 6.2% After Seven-Year APAC Deal Fuels Free Cash Flow Turnaround | Planet Labs PBC has secured a seven-year satellite contract in the Asia-Pacific region, leading to three consecutive qua | [Link](https://longbridge.com/en/news/272298194.md) | | Planet Labs PBC (NYSE:PL) Posts Quarterly Earnings Results, Misses Expectations By $0.17 EPS | Planet Labs PBC reported a quarterly EPS of ($0.19), missing analysts' expectations by $0.17. The company has a negative | [Link](https://longbridge.com/en/news/269289309.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.