Civmec Limited (ASX:CVL) Stock Catapults 27% Though Its Price And Business Still Lag The Market
Civmec Limited (ASX:CVL) shares have had a really impressive month, gaining 27% after a shaky period beforehand. Taking a wider view, although not as strong as the last month, the full year gain of 13% is also fairly reasonable.
In spite of the firm bounce in price, given about half the companies in Australia have price-to-earnings ratios (or “P/E’s”) above 19x, you may still consider Civmec as an attractive investment with its 9.3x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
