Subdued Growth No Barrier To Sanlam Limited’s (JSE:SLM) Price
There wouldn’t be many who think Sanlam Limited’s (JSE:SLM) price-to-earnings (or “P/E”) ratio of 9.7x is worth a mention when the median P/E in South Africa is similar at about 8x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
With earnings growth that’s superior to most other companies of late, Sanlam has been doing relatively well. One possibility is that the P/E is moderate because investors think this strong earnings performance might be about to tail off. If not, then existing…
