Benign Growth For Pirelli & C. S.p.A. (BIT:PIRC) Underpins Its Share Price
Pirelli & C. S.p.A.’s (BIT:PIRC) price-to-earnings (or “P/E”) ratio of 11.6x might make it look like a buy right now compared to the market in Italy, where around half of the companies have P/E ratios above 18x and even P/E’s above 30x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
Recent times have been advantageous for Pirelli & C as its earnings have been rising faster than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If not, then…
