Earnings Working Against Avantor, Inc.’s (NYSE:AVTR) Share Price
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) above 18x, you may consider Avantor, Inc. (NYSE:AVTR) as an attractive investment with its 12.7x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
We’ve discovered 3 warning signs about Avantor. View them for free.
Recent times have been advantageous for Avantor as its earnings have been rising faster than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If not, then existing shareholders have reason to be quite optimistic about the future direction of the share price.
