It is arguably worth checking if insiders are buying shares, because that might imply they believe the stock is undervalued. Since the market seems unimpressed with Mohini Health & Hygiene, it's quite possible it could surprise on the upside. This suggests that market participants think Mohini Health & Hygiene will underperform other companies in its industry. NSEI:MHHL Price Estimation Relative to Market, June 14th 2019 The image below shows that Mohini Health & Hygiene has a lower P/E than the average (8.4) P/E for companies in the medical equipment industry. The P/E ratio essentially measures market expectations of a company. How Does Mohini Health & Hygiene's P/E Ratio Compare To Its Peers?
I'd therefore be a little surprised if its P/E ratio was not relatively high. And it has bolstered its earnings per share by 7.3% per year over the last five years. Mohini Health & Hygiene increased earnings per share by a whopping 47% last year. A lower P/E should indicate the stock is cheap relative to others - and that may attract buyers. And in that case, the P/E ratio itself will drop rather quickly. That's because companies that grow earnings per share quickly will rapidly increase the 'E' in the equation. P/E ratios primarily reflect market expectations around earnings growth rates. That is not a good or a bad thing per se, but a high P/E does imply buyers are optimistic about the future. P/E of 5.32 = ₹21.4 ÷ ₹4.02 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?Ī higher P/E ratio means that investors are paying a higher price for each ₹1 of company earnings. Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
0 kommentar(er)
