Risks To Shareholder Returns Are Elevated At These Prices For Taboola.com Ltd. (NASDAQ:TBLA)

It's not a stretch to say that Taboola.com Ltd.'s (NASDAQ:TBLA) price-to-sales (or "P/S") ratio of 0.7x right now seems quite "middle-of-the-road" for companies in the Interactive Media and Services industry in the United States, where the median P/S ratio is around 1x. Although, it's not wise to simply ignore the P/S without explanation as investors may be disregarding a distinct opportunity or a costly mistake. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. See our latest analysis for Taboola.com NasdaqGS:TBLA Price to Sales Ratio vs Industry January 9th 2026 How Has Taboola.com Performed Recently? Recent times haven't been great for Taboola.com as its revenue has been rising slower than most other companies. It might be that many expect the uninspiring revenue performance to strengthen positively, which has kept the P/S ratio from falling. If not, then existing shareholders may be a little nervous about the viability of the share price. If you'd like to see what analysts are forecasting going forward, you should check out our free report on Taboola.com. How Is Taboola.com's Revenue Growth Trending? The only time you'd be comfortable seeing a P/S like Taboola.com's is when the company's growth is tracking the industry closely. Taking a look back first, we see that the company managed to grow revenues by a handy 11% last year. The latest three year period has also seen an excellent 31% overall rise in revenue, aided somewhat by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company. Turning to the outlook, the next three years should generate growth of 6.2% per annum as estimated by the six analysts watching the company. With the industry predicted to deliver 14% growth each year, the company is positioned for a weaker revenue result. In light of this, it's curious that Taboola.com's P/S sits in line with the majority of other companies. 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 Taboola.com's P/S Using the price-to-sales ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. When you consider that Taboola.com's revenue growth estimates are fairly muted compared to the broader industry, it's easy to see why we consider it unexpected to be trading at its current P/S ratio. 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. A positive change is needed in order to justify the current price-to-sales ratio. A lot of potential risks can sit within a company's balance sheet. Our free balance sheet analysis for Taboola.com with six simple checks will allow you to discover any risks that could be an issue. If companies with solid past earnings growth is up your alley, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.