Keppel Infrastructure Trust’s (SGX:A7RU) Share Price Could Signal Some Risk
Keppel Infrastructure Trust’s (SGX:A7RU) price-to-earnings (or “P/E”) ratio of 18.6x might make it look like a sell right now compared to the market in Singapore, where around half of the companies have P/E ratios below 13x and even P/E’s below 8x 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 as high as it is.
Keppel Infrastructure Trust certainly has been doing a good job lately as it’s been growing earnings more than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. If…
