You might be right in your ratio analysis and it might be an accurate metric to look at long-term (five years). But for short-to-medium term, it is a very primitive ratio to use and is like picking the “low-hanging fruit” to value a company.
The markets preference for short to medium term is seeing growing margins, not growing revenues. The simple reason is that it is much easier to grow revenue than to grow margins. Revenues can easily be inflated, but rising margins are much more difficult to achieve.
I posted a message more than a month ago, my belief was that the stock was undervalued and the stock should be trading close to $28.
But we have earnings coming out, in which we will be able to evaluate if $28 is the ceiling for now or not. And the margin analysis will represent the insight into whether further short-term growth is likely, because it will allow us to understand the current company dynamics and cost management efficiency.