OM Holdings Limited’s (ASX:OMH) Share Price Could Signal Some Risk
It’s not a stretch to say that OM Holdings Limited’s (ASX:OMH) price-to-earnings (or “P/E”) ratio of 17x right now seems quite “middle-of-the-road” compared to the market in Australia, where the median P/E ratio is around 19x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
As an illustration, earnings have deteriorated at OM Holdings over the last year, which is not ideal at all. One possibility is that the P/E is moderate because investors think the company might still do enough to be in line with the broader market in the near…
