With A 26% Price Drop For Guotai Junan International Holdings Limited (HKG:1788) You’ll Still Get What You Pay For
Guotai Junan International Holdings Limited (HKG:1788) shares have retraced a considerable 26% in the last month, reversing a fair amount of their solid recent performance. Nonetheless, the last 30 days have barely left a scratch on the stock’s annual performance, which is up a whopping 317%.
In spite of the heavy fall in price, Guotai Junan International Holdings’ price-to-earnings (or “P/E”) ratio of 59.4x might still make it look like a strong sell right now compared to the market in Hong Kong, where around half of the companies have P/E ratios below 12x and even P/E’s below 7x 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.
