Published on 17 Apr 2023 on Simply Wall St. via Yahoo Finance
Subdued Growth No Barrier To Sosandar Plc's (LON:SOS) Price
When close to half the companies in the United Kingdom have price-to-earnings ratios (or "P/E's") below 13x, you may consider Sosandar Plc (LON:SOS) as a stock to avoid entirely with its 62.5x 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.
For example, consider that Sosandar's financial performance has been pretty ordinary lately as earnings growth is non-existent. One possibility is that the P/E is high because investors think the benign earnings growth will improve to outperform the broader market in the near future. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
Check out our latest analysis for Sosandar