Ebara Corporation’s (TSE:6361) 27% Price Boost Is Out Of Tune With Earnings
Ebara Corporation (TSE:6361) shares have continued their recent momentum with a 27% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 15% is also fairly reasonable.
After such a large jump in price, given around half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 13x, you may consider Ebara as a stock to potentially avoid with its 17.8x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
Ebara could be doing better as it’s been growing earnings less than…
