Viva Leisure Limited’s (ASX:VVA) P/E Is Still On The Mark Following 29% Share Price Bounce
The Viva Leisure Limited (ASX:VVA) share price has done very well over the last month, posting an excellent gain of 29%. Looking further back, the 23% rise over the last twelve months isn’t too bad notwithstanding the strength over the last 30 days.
After such a large jump in price, Viva Leisure’s price-to-earnings (or “P/E”) ratio of 32.2x might make it look like a strong sell right now compared to the market in Australia, where around half of the companies have P/E ratios below 20x and even P/E’s below 12x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
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