Insufficient Growth At IAR S.A. (BVB:IARV) Hampers Share Price
With a price-to-earnings (or “P/E”) ratio of 7.6x IAR S.A. (BVB:IARV) may be sending very bullish signals at the moment, given that almost half of all companies in Romania have P/E ratios greater than 16x and even P/E’s higher than 47x are not unusual. However, the P/E might be quite low for a reason and it requires further investigation to determine if it’s justified.
With earnings growth that’s exceedingly strong of late, IAR has been doing very well. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If you like the company, you’d be hoping this…
