What MODEC, Inc.’s (TSE:6269) 27% Share Price Gain Is Not Telling You
MODEC, Inc. (TSE:6269) shares have continued their recent momentum with a 27% gain in the last month alone. The annual gain comes to 176% following the latest surge, making investors sit up and take notice.
Although its price has surged higher, you could still be forgiven for feeling indifferent about MODEC’s P/E ratio of 15.1x, since the median price-to-earnings (or “P/E”) ratio in Japan is also close to 15x. While this might not raise any eyebrows, if the P/E ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.
