There’s Reason For Concern Over Kao Corporation’s (TSE:4452) Price
When close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 13x, you may consider Kao Corporation (TSE:4452) as a stock to avoid entirely with its 26.8x P/E ratio. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
With earnings growth that’s superior to most other companies of late, Kao has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. You’d…
