Amplifon S.p.A. (BIT:AMP) May Have Run Too Fast Too Soon With Recent 26% Price Plummet
Amplifon S.p.A. (BIT:AMP) shareholders won’t be pleased to see that the share price has had a very rough month, dropping 26% and undoing the prior period’s positive performance. Instead of being rewarded, shareholders who have already held through the last twelve months are now sitting on a 47% share price drop.
Although its price has dipped substantially, Amplifon’s price-to-earnings (or “P/E”) ratio of 27x might still make it look like a strong sell right now compared to the market in Italy, where around half of the companies have P/E ratios below 16x and even P/E’s below 11x 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.
