Mitsubishi Corporation’s (TSE:8058) Price Is Right But Growth Is Lacking
With a price-to-earnings (or “P/E”) ratio of 9x Mitsubishi Corporation (TSE:8058) may be sending bullish signals at the moment, given that almost half of all companies in Japan have P/E ratios greater than 13x and even P/E’s higher than 20x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Mitsubishi certainly has been doing a good job lately as it’s been growing earnings more than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If not, then existing…
