MEDIROM Healthcare shares surge 11.11% premarket as strong revenue growth and low P/S ratio suggest undervaluation.

MEDIROM Healthcare Technologies Inc. (NASDAQ: MRM) rose 11.11% in premarket trading, driven by renewed investor interest in its valuation and revenue growth. The stock’s low price-to-sales ratio (0.2x vs. industry average of 1.3x) has drawn attention, with analysts noting its potential undervaluation despite a 13% annual revenue increase and 25% three-year growth. Recent industry forecasts align with the company’s performance, suggesting growth expectations are in line with peers. The article highlights MEDIROM’s positioning in AI-driven healthcare innovations, which could enhance its appeal as a high-growth, low-market-cap ($10B threshold) opportunity. The premarket surge reflects optimism that the stock’s discounted valuation may correct as investors anticipate stronger-than-expected revenue traction in the near term.