Nova Ltd.’s (NASDAQ:NVMI) Share Price Not Quite Adding Up
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 17x, you may consider Nova Ltd. (NASDAQ:NVMI) as a stock to avoid entirely with its 31.7x P/E ratio. 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.
Recent times have been advantageous for Nova as its earnings have been rising faster than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. You’d really hope so, otherwise you’re paying a pretty hefty price for no particular reason. …
