Why We’re Not Concerned About SalMar ASA’s (OB:SALM) Share Price
When close to half the companies in Norway have price-to-earnings ratios (or “P/E’s”) below 12x, you may consider SalMar ASA (OB:SALM) as a stock to avoid entirely with its 30.7x P/E ratio. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
SalMar could be doing better as it’s been growing earnings less than most other companies lately. It might be that many expect the uninspiring earnings performance to recover significantly, which has kept the P/E from collapsing. You’d really hope so, otherwise you’re paying a pretty hefty price for no…
