Earnings Working Against RWE Aktiengesellschaft’s (ETR:RWE) Share Price
With a price-to-earnings (or “P/E”) ratio of 10x RWE Aktiengesellschaft (ETR:RWE) may be sending bullish signals at the moment, given that almost half of all companies in Germany have P/E ratios greater than 19x and even P/E’s higher than 37x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
RWE could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. The P/E is probably low because investors think this poor earnings performance isn’t going to get any…
