What Daito Koun Co.,Ltd.’s (TSE:9367) 39% Share Price Gain Is Not Telling You
The Daito Koun Co.,Ltd. (TSE:9367) share price has done very well over the last month, posting an excellent gain of 39%. Looking back a bit further, it’s encouraging to see the stock is up 54% in the last year.
Even after such a large jump in price, it’s still not a stretch to say that Daito KounLtd’s price-to-earnings (or “P/E”) ratio of 14.8x right now seems quite “middle-of-the-road” compared to the market in Japan, where the median P/E ratio is around 15x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
The earnings growth achieved at…
