ESGL Holdings (ESGL) Suffers Deepening Losses and High Valuation: A Bullish Turnaround Narrative Faces Challenges

ESGL Holdings' losses have deepened at an 18.6% annual rate over the past five years, with low earnings quality and a net profit margin yet to improve. The company's Price-To-Sales Ratio of 30.3x is significantly above the peer average of 2.8x, creating a high hurdle for any recovery narrative to justify the current share price. The combination of sustained unprofitability and significantly higher valuation compared to industry standards is a key factor in assessing the current risk profile.