VIQ Solutions Inc. (TSE:VQS) shares have had a really impressive month, gaining 45% after a shaky period beforehand. Still, the 30-day jump doesn't change the fact that longer term shareholders have seen their stock decimated by the 73% share price drop in the last twelve months.

Although its price has surged higher, VIQ Solutions may still look like a strong buying opportunity at present with its price-to-sales (or "P/S") ratio of 0.3x, considering almost half of all companies in the Software industry in Canada have P/S ratios greater than 3.9x and even P/S higher than 14x aren't out of the ordinary. Although, it's not wise to just take the P/S at face value as there may be an explanation why it's so limited.

Check out our latest analysis for VIQ Solutions

How Has VIQ Solutions Performed Recently?

VIQ Solutions certainly has been doing a good job lately as it's been growing revenue more than most other companies. Perhaps the market is expecting future revenue performance to dive, which has kept the P/S suppressed. If the company manages to stay the course, then investors should be rewarded with a share price that matches its revenue figures.

Want the full picture on analyst estimates for the company? Then our free report on VIQ Solutions will help you uncover what's on the horizon.

How Is VIQ Solutions' Revenue Growth Trending?

In order to justify its P/S ratio, VIQ Solutions would need to produce anemic growth that's substantially trailing the industry.

If we review the last year of revenue growth, the company posted a terrific increase of 29%. The strong recent performance means it was also able to grow revenue by 69% in total over the last three years. So we can start by confirming that the company has done a great job of growing revenue over that time.

Looking ahead now, revenue is anticipated to climb by 8.0% during the coming year according to the three analysts following the company. That's shaping up to be materially lower than the 18% growth forecast for the broader industry.

With this information, we can see why VIQ Solutions is trading at a P/S lower than the industry. Apparently many shareholders weren't comfortable holding on while the company is potentially eyeing a less prosperous future.

What We Can Learn From VIQ Solutions' P/S?

Shares in VIQ Solutions have risen appreciably however, its P/S is still subdued. 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.