Zimplats Holdings Limited’s (ASX:ZIM) 27% Share Price Surge Not Quite Adding Up
Despite an already strong run, Zimplats Holdings Limited (ASX:ZIM) shares have been powering on, with a gain of 27% in the last thirty days. Looking back a bit further, it’s encouraging to see the stock is up 31% in the last year.
Following the firm bounce in price, Zimplats Holdings’ price-to-earnings (or “P/E”) ratio of 35x might make it look like a strong sell right now compared to the market in Australia, where around half of the companies have P/E ratios below 21x and even P/E’s below 12x 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.
