UBIVELOX Inc’s (KOSDAQ:089850) Price Is Right But Growth Is Lacking
UBIVELOX Inc’s (KOSDAQ:089850) price-to-earnings (or “P/E”) ratio of 7.3x might make it look like a buy right now compared to the market in Korea, where around half of the companies have P/E ratios above 12x and even P/E’s above 25x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
As an illustration, earnings have deteriorated at UBIVELOX over the last year, which is not ideal at all. One possibility is that the P/E is low because investors think the company won’t do enough to avoid underperforming the broader market in the near future. If…
