ALK-Abelló A/S’ (CPH:ALK B) Share Price Matching Investor Opinion
With a price-to-earnings (or “P/E”) ratio of 43.1x ALK-Abelló A/S (CPH:ALK B) may be sending very bearish signals at the moment, given that almost half of all companies in Denmark have P/E ratios under 13x and even P/E’s lower than 7x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
Recent times have been advantageous for ALK-Abelló as its earnings have been rising faster than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. You’d really hope so, otherwise you’re paying a pretty hefty price for no particular reason.
See our latest analysis for ALK-Abelló
