HOUSEI Inc.’s (TSE:5035) 27% Price Boost Is Out Of Tune With Earnings
HOUSEI Inc. (TSE:5035) shareholders would be excited to see that the share price has had a great month, posting a 27% gain and recovering from prior weakness. Notwithstanding the latest gain, the annual share price return of 6.7% isn’t as impressive.
Since its price has surged higher, HOUSEI’s price-to-earnings (or “P/E”) ratio of 28.7x might make it look like a strong sell right now compared to the market in Japan, where around half of the companies have P/E ratios below 12x and even P/E’s below 9x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
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