On the Beach Group plc (LON:OTB) shareholders have had their patience rewarded with a 43% share price jump in the last month. Taking a wider view, although not as strong as the last month, the full year gain of 14% is also fairly reasonable.

Following the firm bounce in price, given close to half the companies operating in the United Kingdom's Hospitality industry have price-to-sales ratios (or "P/S") below 1x, you may consider On the Beach Group as a stock to potentially avoid with its 1.6x P/S ratio. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's as high as it is.

Check out our latest analysis for On the Beach Group

What Does On the Beach Group's Recent Performance Look Like?

Recent times haven't been great for On the Beach Group as its revenue has been rising slower than most other companies. It might be that many expect the uninspiring revenue performance to recover significantly, which has kept the P/S ratio from collapsing. If not, then existing shareholders may be very 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 On the Beach Group.

How Is On the Beach Group's Revenue Growth Trending?

On the Beach Group's P/S ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the industry.

Taking a look back first, we see that the company grew revenue by an impressive 18% last year. Spectacularly, three year revenue growth has ballooned by several orders of magnitude, thanks in part to the last 12 months of revenue growth. Accordingly, shareholders would have been over the moon with those medium-term rates of revenue growth.

Looking ahead now, revenue is anticipated to climb by 11% each year during the coming three years according to the eight analysts following the company. With the industry only predicted to deliver 8.3% per annum, the company is positioned for a stronger revenue result.

With this information, we can see why On the Beach Group 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.

The Bottom Line On On the Beach Group's P/S

On the Beach Group's P/S is on the rise since its shares have risen strongly. 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.