Churchill Downs Incorporated’s (NASDAQ:CHDN) Share Price Matching Investor Opinion
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Churchill Downs Incorporated (NASDAQ:CHDN) as a stock to potentially avoid with its 24.6x P/E ratio. However, the P/E might be high for a reason and it requires further investigation to determine if it’s justified.
Churchill Downs certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. The P/E is probably high because investors think the company will continue to navigate the broader market headwinds better than most. You’d really hope so, otherwise you’re paying a pretty hefty price for no particular…
