There Is A Reason Hochschild Mining plc’s (LON:HOC) Price Is Undemanding
When close to half the companies in the United Kingdom have price-to-earnings ratios (or “P/E’s”) above 17x, you may consider Hochschild Mining plc (LON:HOC) as an attractive investment with its 13x P/E ratio. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
Hochschild Mining certainly has been doing a good job lately as it’s been growing earnings more than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If not, then existing shareholders have reason to be…
