There’s Reason For Concern Over CEZ, a. s.’s (SEP:CEZ) Price
CEZ, a. s.’s (SEP:CEZ) price-to-earnings (or “P/E”) ratio of 22.3x might make it look like a sell right now compared to the market in Czech Republic, where around half of the companies have P/E ratios below 17x and even P/E’s below 9x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
CEZ a. s could be doing better as its earnings have been going backwards lately while most other companies have been seeing positive earnings growth. One possibility is that the P/E is high because investors think this poor earnings performance will turn…
