Why Investors Shouldn’t Be Surprised By Westgold Resources Limited’s (ASX:WGX) 25% Share Price Surge
Westgold Resources Limited (ASX:WGX) shares have had a really impressive month, gaining 25% after a shaky period beforehand. Looking back a bit further, it’s encouraging to see the stock is up 43% in the last year.
Since its price has surged higher, given close to half the companies in Australia have price-to-earnings ratios (or “P/E’s”) below 18x, you may consider Westgold Resources as a stock to avoid entirely with its 30.2x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty.
