Aimflex Berhad’s (KLSE:AIMFLEX) Price Is Out Of Tune With Earnings
When close to half the companies in Malaysia have price-to-earnings ratios (or “P/E’s”) below 14x, you may consider Aimflex Berhad (KLSE:AIMFLEX) as a stock to potentially avoid with its 20.9x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
For example, consider that Aimflex Berhad’s financial performance has been poor lately as its earnings have been in decline. It might be that many expect the company to still outplay most other companies over the coming period, which has kept the P/E from collapsing. You’d really hope so, otherwise…
