Wacker Chemie AG’s (ETR:WCH) Business Is Yet to Catch Up With Its Share Price
When close to half the companies in Germany have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Wacker Chemie AG (ETR:WCH) as a stock to potentially avoid with its 23.8x 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.
With earnings growth that’s superior to most other companies of late, Wacker Chemie has been doing relatively well. The P/E is probably high because investors think this strong earnings performance will continue. If not, then existing shareholders might be a little nervous about the viability of the share…
