Kiwoom Securities Co., Ltd.’s (KRX:039490) Share Price Boosted 26% But Its Business Prospects Need A Lift Too
Kiwoom Securities Co., Ltd. (KRX:039490) shareholders would be excited to see that the share price has had a great month, posting a 26% gain and recovering from prior weakness. Unfortunately, despite the strong performance over the last month, the full year gain of 3.8% isn’t as attractive.
In spite of the firm bounce in price, Kiwoom Securities’ price-to-earnings (or “P/E”) ratio of 4.4x might still make it look like a strong buy right now compared to the market in Korea, where around half of the companies have P/E ratios above 12x and even P/E’s above 26x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
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