Kobe Bussan Co., Ltd.’s (TSE:3038) 29% Share Price Surge Not Quite Adding Up
Kobe Bussan Co., Ltd. (TSE:3038) shareholders have had their patience rewarded with a 29% share price jump in the last month. The last 30 days bring the annual gain to a very sharp 30%.
Following the firm bounce in price, Kobe Bussan may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 37.1x, since almost half of all companies in Japan have P/E ratios under 12x and even P/E’s lower than 8x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
Recent times haven’t been advantageous for…
