Automotive Finco Corp.’s (CVE:AFCC.H) Price Is Right But Growth Is Lacking After Shares Rocket 29%
Automotive Finco Corp. (CVE:AFCC.H) shareholders would be excited to see that the share price has had a great month, posting a 29% gain and recovering from prior weakness. Looking back a bit further, it’s encouraging to see the stock is up 78% in the last year.
Although its price has surged higher, given about half the companies in Canada have price-to-earnings ratios (or “P/E’s”) above 16x, you may still consider Automotive Finco as an attractive investment with its 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 limited.
Earnings have risen firmly…
