Subdued Growth No Barrier To eSOL Co.,Ltd.’s (TSE:4420) Price
When close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 14x, you may consider eSOL Co.,Ltd. (TSE:4420) as a stock to avoid entirely with its 23.7x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
For example, consider that eSOLLtd’s financial performance has been poor lately as its earnings have been in decline. One possibility is that the P/E is high because investors think the company will still do enough to…
