No.1 Co.,Ltd’s (TSE:3562) 26% Price Boost Is Out Of Tune With Earnings
No.1 Co.,Ltd (TSE:3562) shareholders are no doubt pleased to see that the share price has bounced 26% in the last month, although it is still struggling to make up recently lost ground. The last 30 days bring the annual gain to a very sharp 93%.
Since its price has surged higher, No.1Ltd may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 22.8x, since almost half of all companies in Japan have P/E ratios under 12x and even P/E’s lower than 9x are not unusual. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
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