Südwestdeutsche Salzwerke AG’s (FRA:SSH) Share Price Could Signal Some Risk
When close to half the companies in Germany have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Südwestdeutsche Salzwerke AG (FRA:SSH) as a stock to potentially avoid with its 22.6x P/E ratio. However, the P/E might be high for a reason and it requires further investigation to determine if it’s justified.
As an illustration, earnings have deteriorated at Südwestdeutsche Salzwerke over the last year, which is not ideal at all. One possibility is that the P/E is high because investors think the company will still do enough to outperform the broader market in the near future. You’d really hope so,…
