Quálitas Controladora, S.A.B. de C.V.’s (BMV:Q) 29% Price Boost Is Out Of Tune With Earnings
Quálitas Controladora, S.A.B. de C.V. (BMV:Q) shares have had a really impressive month, gaining 29% after a shaky period beforehand. Notwithstanding the latest gain, the annual share price return of 10.0% isn’t as impressive.
After such a large jump in price, given around half the companies in Mexico have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider Quálitas Controladora. de as a stock to potentially avoid with its 17.2x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
Recent times have been advantageous for…
