There Is A Reason IGG Inc’s (HKG:799) Price Is Undemanding
IGG Inc’s (HKG:799) price-to-earnings (or “P/E”) ratio of 8x might make it look like a buy right now compared to the market in Hong Kong, where around half of the companies have P/E ratios above 13x and even P/E’s above 26x are quite common. However, the P/E might be low for a reason and it requires further investigation to determine if it’s justified.
While the market has experienced earnings growth lately, IGG’s earnings have gone into reverse gear, which is not great. The P/E is probably low because investors think this poor earnings performance isn’t going to get any better. If you still like the company,…
