Jeju Semiconductor Corp.’s (KOSDAQ:080220) 34% Share Price Surge Not Quite Adding Up
Despite an already strong run, Jeju Semiconductor Corp. (KOSDAQ:080220) shares have been powering on, with a gain of 34% in the last thirty days. The last month tops off a massive increase of 199% in the last year.
Since its price has surged higher, Jeju Semiconductor’s price-to-earnings (or “P/E”) ratio of 38.6x might make it look like a strong sell right now compared to the market in Korea, where around half of the companies have P/E ratios below 14x and even P/E’s below 7x are quite common. 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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