IWS Group Holdings Limited’s (HKG:6663) 26% Share Price Plunge Could Signal Some Risk
To the annoyance of some shareholders, IWS Group Holdings Limited (HKG:6663) shares are down a considerable 26% in the last month, which continues a horrid run for the company. Indeed, the recent drop has reduced its annual gain to a relatively sedate 4.2% over the last twelve months.
Although its price has dipped substantially, IWS Group Holdings’ price-to-earnings (or “P/E”) ratio of 48.2x might still make it look like a strong sell right now compared to the market in Hong Kong, where around half of the companies have P/E ratios below 11x and even P/E’s below 6x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
