Benign Growth For Exxaro Resources Limited (JSE:EXX) Underpins Its Share Price
With a price-to-earnings (or “P/E”) ratio of 5.6x Exxaro Resources Limited (JSE:EXX) may be sending bullish signals at the moment, given that almost half of all companies in South Africa have P/E ratios greater than 10x and even P/E’s higher than 15x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s limited.
Exxaro Resources hasn’t been tracking well recently as its declining earnings compare poorly to other companies, which have seen some growth on average. It seems that many are expecting the dour earnings performance to persist, which has…
