Sanwa Holdings Corporation’s (TSE:5929) Price Is Out Of Tune With Earnings
Sanwa Holdings Corporation’s (TSE:5929) price-to-earnings (or “P/E”) ratio of 17.8x might make it look like a sell right now compared to the market in Japan, where around half of the companies have P/E ratios below 14x and even P/E’s below 10x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
With earnings growth that’s superior to most other companies of late, Sanwa Holdings has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. You’d really hope so,…
