Fras-le S.A.’s (BVMF:FRAS3) Price In Tune With Earnings
Fras-le S.A.’s (BVMF:FRAS3) price-to-earnings (or “P/E”) ratio of 20.9x might make it look like a strong sell right now compared to the market in Brazil, where around half of the companies have P/E ratios below 9x and even P/E’s below 6x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
While the market has experienced earnings growth lately, Fras-le’s earnings have gone into reverse gear, which is not great. One possibility is that the…
