Benign Growth For Powerhouse Ventures Limited (ASX:PVL) Underpins Its Share Price
Powerhouse Ventures Limited’s (ASX:PVL) price-to-earnings (or “P/E”) ratio of 8.4x might make it look like a strong buy right now compared to the market in Australia, where around half of the companies have P/E ratios above 21x and even P/E’s above 39x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
Powerhouse Ventures certainly has been doing a great job lately as it’s been growing earnings at a really rapid pace. One possibility is that the P/E is low because investors think this strong earnings growth might actually…
