Ingenieur Gudang Berhad’s (KLSE:INGENIEU) Share Price Is Matching Sentiment Around Its Earnings
When close to half the companies in Malaysia have price-to-earnings ratios (or “P/E’s”) above 16x, you may consider Ingenieur Gudang Berhad (KLSE:INGENIEU) as a highly attractive investment with its 3.1x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
With earnings growth that’s exceedingly strong of late, Ingenieur Gudang Berhad has been doing very well. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If you like the company, you’d be hoping this isn’t the case so that you could potentially pick up some stock while it’s out of favour.
