Nagoya Railroad Co., Ltd.’s (TSE:9048) Share Price Is Matching Sentiment Around Its Earnings
With a price-to-earnings (or “P/E”) ratio of 10x Nagoya Railroad Co., Ltd. (TSE:9048) may be sending bullish signals at the moment, given that almost half of all companies in Japan have P/E ratios greater than 15x and even P/E’s higher than 23x are not unusual. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
Nagoya Railroad certainly has been doing a good job lately as it’s been growing earnings more than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If…
