REA Group Limited’s (ASX:REA) Share Price Could Signal Some Risk
REA Group Limited’s (ASX:REA) price-to-earnings (or “P/E”) ratio of 37.8x might make it look like a strong sell right now compared to the market in Australia, where around half of the companies have P/E ratios below 21x and even P/E’s below 12x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
With earnings growth that’s superior to most other companies of late, REA Group has been doing relatively well. It seems that many are expecting…
