Isrotel Ltd. (TLV:ISRO) shareholders have had their patience rewarded with a 37% share price jump in the last month. The last 30 days bring the annual gain to a very sharp 32%.
Following the firm bounce in price, Isrotel’s price-to-earnings (or “P/E”) ratio of 22.3x might make it look like a sell right now compared to the market in Israel, where around half of the companies have P/E ratios below 16x and even P/E’s below 10x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
The earnings growth achieved at Isrotel over the last…
