What Hyosung ITX Co. Ltd’s (KRX:094280) 25% Share Price Gain Is Not Telling You
The Hyosung ITX Co. Ltd (KRX:094280) share price has done very well over the last month, posting an excellent gain of 25%. Taking a wider view, although not as strong as the last month, the full year gain of 15% is also fairly reasonable.
Since its price has surged higher, Hyosung ITX’s price-to-earnings (or “P/E”) ratio of 18.6x might make it look like a sell right now compared to the market in Korea, where around half of the companies have P/E ratios below 12x and even P/E’s below 7x are quite common. However, the P/E might be high for a reason and it requires further investigation to determine if it’s justified.
