Market Might Still Lack Some Conviction On Solvar Limited (ASX:SVR) Even After 30% Share Price Boost
The Solvar Limited (ASX:SVR) share price has done very well over the last month, posting an excellent gain of 30%. The last 30 days bring the annual gain to a very sharp 81%.
Even after such a large jump in price, you could still be forgiven for feeling indifferent about Solvar’s P/E ratio of 16.4x, since the median price-to-earnings (or “P/E”) ratio in Australia is also close to 18x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
While the market has experienced earnings growth lately, Solvar’s earnings have gone into reverse gear, which…
