NRW Holdings Limited’s (ASX:NWH) P/E Is Still On The Mark Following 28% Share Price Bounce
NRW Holdings Limited (ASX:NWH) shares have continued their recent momentum with a 28% gain in the last month alone. Taking a wider view, although not as strong as the last month, the full year gain of 20% is also fairly reasonable.
Since its price has surged higher, NRW Holdings may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 68.4x, since almost half of all companies in Australia have P/E ratios under 20x and even P/E’s lower than 12x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
