When close to half the companies in Korea have price-to-earnings ratios (or “P/E’s”) above 15x, you may consider Hyundai Wia Corporation (KRX:011210) as an attractive investment with its 10x 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.
Recent times have been pleasing for Hyundai Wia as its earnings have risen in spite of the market’s earnings going into reverse. One possibility is that the P/E is low because investors think the company’s earnings are going to fall away like everyone else’s soon. If not, then existing shareholders have reason…
