The Price Is Right For Wirtualna Polska Holding S.A. (WSE:WPL)
Wirtualna Polska Holding S.A.’s (WSE:WPL) price-to-earnings (or “P/E”) ratio of 17.3x might make it look like a sell right now compared to the market in Poland, where around half of the companies have P/E ratios below 13x and even P/E’s below 8x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
The recently shrinking earnings for Wirtualna Polska Holding have been in line with the market. One possibility is that the P/E is high because investors think the company can turn things around and break free from the broader downward trend in…
