World Acceptance Corporation’s (NASDAQ:WRLD) Share Price Is Matching Sentiment Around Its Earnings
World Acceptance Corporation’s (NASDAQ:WRLD) price-to-earnings (or “P/E”) ratio of 9.6x might make it look like a buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 19x and even P/E’s above 33x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
Recent times have been advantageous for World Acceptance as its earnings have been rising faster than most other companies. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the…
