Singapore Exchange Limited’s (SGX:S68) Price Is Out Of Tune With Earnings
Singapore Exchange Limited’s (SGX:S68) price-to-earnings (or “P/E”) ratio of 22.8x might make it look like a strong sell right now compared to the market in Singapore, where around half of the companies have P/E ratios below 12x and even P/E’s below 7x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
With earnings growth that’s superior to most other companies of late, Singapore Exchange has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then…
