MEDIROM Healthcare shares surge 11.11% after hours on strong revenue growth and undervalued P/S ratio.

MEDIROM Healthcare Technologies (NASDAQ:MRM) surged 11.11% in after-hours trading, driven by positive valuation signals highlighted in a recent analysis. The stock’s price-to-sales (P/S) ratio of 0.2x, significantly below the industry average of 1.3x, was cited as a potential buy signal, despite concerns about future growth underperformance. The report noted the company’s robust revenue growth—13% year-over-year and 25% over three years—aligning with industry expectations of 8.2% annual growth. While the low P/S ratio may reflect bearish sentiment, the strong revenue trends and undervaluation likely attracted investor optimism, suggesting potential upside if growth meets expectations. The after-hours rally reflects renewed confidence in the company’s fundamentals, particularly in the context of AI-driven healthcare innovation and its strategic positioning in a growing sector.