Insource Co., Ltd.’s (TSE:6200) P/E Is Still On The Mark Following 26% Share Price Bounce
Those holding Insource Co., Ltd. (TSE:6200) shares would be relieved that the share price has rebounded 26% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Taking a wider view, although not as strong as the last month, the full year gain of 20% is also fairly reasonable.
Since its price has surged higher, given close to half the companies in Japan have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider Insource as a stock to avoid entirely with its 22x 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.
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