Subdued Growth No Barrier To ReposiTrak, Inc.’s (NYSE:TRAK) Price
ReposiTrak, Inc.’s (NYSE:TRAK) price-to-earnings (or “P/E”) ratio of 46.4x might make it look like a strong sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 17x and even P/E’s below 10x 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, ReposiTrak 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, otherwise…
