Vongroup Limited (HKG:318) Stock Catapults 38% Though Its Price And Business Still Lag The Market
Vongroup Limited (HKG:318) shares have had a really impressive month, gaining 38% after a shaky period beforehand. Looking back a bit further, it’s encouraging to see the stock is up 33% in the last year.
Although its price has surged higher, given about half the companies in Hong Kong have price-to-earnings ratios (or “P/E’s”) above 11x, you may still consider Vongroup as a highly attractive investment with its 5.1x P/E ratio. However, the P/E might be quite low for a reason and it requires further investigation to determine if it’s justified.
Vongroup certainly has been doing a great job lately as it’s been growing earnings at a really rapid pace. One possibility is that the P/E is low because investors think this strong…
