Earnings Working Against Boliden AB (publ)’s (STO:BOL) Share Price
With a price-to-earnings (or “P/E”) ratio of 11.5x Boliden AB (publ) (STO:BOL) may be sending very bullish signals at the moment, given that almost half of all companies in Sweden have P/E ratios greater than 24x and even P/E’s higher than 39x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so limited.
There hasn’t been much to differentiate Boliden’s and the market’s earnings growth lately. It might be that many expect the mediocre earnings performance to degrade, which has repressed the P/E. If you like the company, you’d be hoping this…
