Investors Still Aren’t Entirely Convinced By Valeo SE’s (EPA:FR) Earnings Despite 32% Price Jump
Valeo SE (EPA:FR) shareholders are no doubt pleased to see that the share price has bounced 32% in the last month, although it is still struggling to make up recently lost ground. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 27% in the last twelve months.
Although its price has surged higher, it’s still not a stretch to say that Valeo’s price-to-earnings (or “P/E”) ratio of 13.4x right now seems quite “middle-of-the-road” compared to the market in France, where the median P/E ratio is around 15x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
