Shareholders Should Be Pleased With Suzlon Energy Limited’s (NSE:SUZLON) Price
With a price-to-earnings (or “P/E”) ratio of 72.9x Suzlon Energy Limited (NSE:SUZLON) may be sending very bearish signals at the moment, given that almost half of all companies in India have P/E ratios under 27x and even P/E’s lower than 15x 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.
Suzlon Energy certainly has been doing a good job lately as it’s been growing earnings more than most other companies. The P/E is probably high because investors think this strong earnings performance will continue. If not, then existing…
