Fund Creation Group Company Limited’s (TSE:3266) 44% Share Price Surge Not Quite Adding Up
The Fund Creation Group Company Limited (TSE:3266) share price has done very well over the last month, posting an excellent gain of 44%. Looking back a bit further, it’s encouraging to see the stock is up 48% in the last year.
After such a large jump in price, given close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 14x, you may consider Fund Creation Group as a stock to avoid entirely with its 27x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
For example, consider that Fund Creation Group’s…
