Ultrapar Participações S.A.’s (BVMF:UGPA3) Share Price Could Signal Some Risk
There wouldn’t be many who think Ultrapar Participações S.A.’s (BVMF:UGPA3) price-to-earnings (or “P/E”) ratio of 7.7x is worth a mention when the median P/E in Brazil is similar at about 9x. However, investors might be overlooking a clear opportunity or potential setback if there is no rational basis for the P/E.
While the market has experienced earnings growth lately, Ultrapar Participações’ earnings have gone into reverse gear, which is not great. It might be that many expect the dour earnings performance to strengthen positively, which has kept the P/E from falling. You’d really hope so, otherwise you’re…
