Published on 18 Dec 2023 on Simply Wall St. via Yahoo Finance
Investors Aren't Entirely Convinced By DRDGOLD Limited's (NYSE:DRD) Earnings
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 17x, you may consider DRDGOLD Limited (NYSE:DRD) as an attractive investment with its 9.3x P/E ratio. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the reduced P/E.
The earnings growth achieved at DRDGOLD over the last year would be more than acceptable for most companies. It might be that many expect the respectable earnings performance to degrade substantially, which has repressed the P/E. If that doesn't eventuate, then existing shareholders have reason to be optimistic about the future direction of the share price.
View our latest analysis for DRDGOLD