Asax Co., Ltd.’s (TSE:8772) Share Price Boosted 27% But Its Business Prospects Need A Lift Too
Asax Co., Ltd. (TSE:8772) shareholders have had their patience rewarded with a 27% share price jump in the last month. Taking a wider view, although not as strong as the last month, the full year gain of 23% is also fairly reasonable.
In spite of the firm bounce in price, Asax may still be sending bullish signals at the moment with its price-to-earnings (or “P/E”) ratio of 9.3x, since almost half of all companies in Japan have P/E ratios greater than 15x and even P/E’s higher than 23x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
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