Published on 18 Dec 2023 on Simply Wall St. via Yahoo Finance

There's Reason For Concern Over Donnelley Financial Solutions, Inc.'s (NYSE:DFIN) Price

When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 16x, you may consider Donnelley Financial Solutions, Inc. (NYSE:DFIN) as a stock to potentially avoid with its 21.6x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E.

With earnings that are retreating more than the market's of late, Donnelley Financial Solutions has been very sluggish. One possibility is that the P/E is high because investors think the company will turn things around completely and accelerate past most others in the market. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

View our latest analysis for Donnelley Financial Solutions