Why Investors Shouldn’t Be Surprised By Viva Leisure Limited’s (ASX:VVA) 29% Share Price Surge
The Viva Leisure Limited (ASX:VVA) share price has done very well over the last month, posting an excellent gain of 29%. Looking further back, the 23% rise over the last twelve months isn’t too bad notwithstanding the strength over the last 30 days.
Following the firm bounce in price, Viva Leisure may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 32.2x, since almost half of all companies in Australia have P/E ratios under 20x and even P/E’s lower than 12x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
We’ve found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the…
