The Price Is Right For ABM Industries Incorporated (NYSE:ABM)
ABM Industries Incorporated’s (NYSE:ABM) price-to-earnings (or “P/E”) ratio of 36.6x 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 18x and even P/E’s below 11x are quite common. However, the P/E might be quite high for a reason and it requires further investigation to determine if it’s justified.
While the market has experienced earnings growth lately, ABM Industries’ earnings have gone into reverse gear, which is not great. One possibility is that the P/E is high because investors think this poor earnings…
