LIG Nex1 Co., Ltd.’s (KRX:079550) 46% Price Boost Is Out Of Tune With Earnings
LIG Nex1 Co., Ltd. (KRX:079550) shareholders would be excited to see that the share price has had a great month, posting a 46% gain and recovering from prior weakness. The annual gain comes to 151% following the latest surge, making investors sit up and take notice.
After such a large jump in price, LIG Nex1 may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 38.1x, since almost half of all companies in Korea have P/E ratios under 13x and even P/E’s lower than 7x are not unusual. 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.
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