Why Investors Shouldn’t Be Surprised By Link-U Group Inc.’s (TSE:4446) 40% Share Price Surge
Despite an already strong run, Link-U Group Inc. (TSE:4446) shares have been powering on, with a gain of 40% in the last thirty days. Notwithstanding the latest gain, the annual share price return of 9.9% isn’t as impressive.
Following the firm bounce in price, Link-U Group’s price-to-earnings (or “P/E”) ratio of 49.9x might make it look like a strong sell right now compared to the market in Japan, where around half of the companies have P/E ratios below 14x and even P/E’s below 10x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
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