There Is A Reason Tohoku Electric Power Company, Incorporated’s (TSE:9506) Price Is Undemanding
With a price-to-earnings (or “P/E”) ratio of 2.8x Tohoku Electric Power Company, Incorporated (TSE:9506) may be sending very bullish signals at the moment, given that almost half of all companies in Japan have P/E ratios greater than 14x and even P/E’s higher than 21x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
While the market has experienced earnings growth lately, Tohoku Electric Power Company’s earnings have gone into reverse gear, which is not great. The P/E is probably low because investors think this poor earnings…
