There’s Reason For Concern Over Volt Group Limited’s (ASX:VPR) Massive 26% Price Jump
Volt Group Limited (ASX:VPR) shares have had a really impressive month, gaining 26% after a shaky period beforehand. Taking a wider view, although not as strong as the last month, the full year gain of 13% is also fairly reasonable.
After such a large jump in price, given around half the companies in Australia have price-to-earnings ratios (or “P/E’s”) below 22x, you may consider Volt Group as a stock to potentially avoid with its 31.8x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
