ITE (Holdings) Limited’s (HKG:8092) 55% Share Price Surge Not Quite Adding Up
ITE (Holdings) Limited (HKG:8092) shareholders would be excited to see that the share price has had a great month, posting a 55% gain and recovering from prior weakness. Looking back a bit further, it’s encouraging to see the stock is up 80% in the last year.
Following the firm bounce in price, given close to half the companies in Hong Kong have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider ITE (Holdings) as a stock to avoid entirely with its 19.3x 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.
Earnings have risen…
