Why Investors Shouldn’t Be Surprised By Black Box Limited’s (NSE:BBOX) 26% Share Price Surge
Black Box Limited (NSE:BBOX) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Taking a wider view, although not as strong as the last month, the full year gain of 14% is also fairly reasonable.
Since its price has surged higher, Black Box’s price-to-earnings (or “P/E”) ratio of 44.2x might make it look like a strong sell right now compared to the market in India, where around half of the companies have P/E ratios below 28x and even P/E’s below 15x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
