IQVIA Holdings Inc.’s (NYSE:IQV) Share Price Matching Investor Opinion
With a price-to-earnings (or “P/E”) ratio of 25.8x IQVIA Holdings Inc. (NYSE:IQV) may be sending bearish signals at the moment, given that almost half of all companies in the United States have P/E ratios under 18x and even P/E’s lower than 11x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
Recent times have been advantageous for IQVIA Holdings as its earnings have been rising faster than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. If not, then existing shareholders might be a little nervous about the viability of the share price.
