10.2x price/earnings ratio (or “P/E”) Astro Malaysia Holdings (KLSE:ASTRO) has sent a bullish signal so far, given that nearly half of all Malaysian companies have P/E ratios above 14x, and P/Es above 23x are not uncommon. There is a possibility that However, it is unwise to take the P/E at face value.
Astro Malaysia Holdings Berhad hasn’t been doing well recently as the decline in revenue has been inadequate compared to other companies that have averaged some growth. There are many views that poor business performance will continue, pushing down the PER. If that happens, existing shareholders will have a hard time getting excited about the future direction of the stock.
Read the latest analysis from Astro Malaysia Holdings Berhad.
If you want to know what the analyst predicts going forward, go here. freedom Report on Astro Malaysia Holdings Berhad.
Is growth consistent with low PER?
Astro Malaysia Holdings Berhad’s P/E ratio is typical of companies with limited growth prospects and, importantly, underperforming the market.
Looking back, the last year was a frustrating one, with the company’s revenue down by 34%. The company hasn’t looked good in the last three years either, as it has shrunk EPS by 48% overall. Unfortunately, we have to admit that the company hasn’t done a great job of growing revenue during that time.
Looking to the outlook, 12 analysts who monitor the company estimate that it will grow at an annual rate of 7.1% over the next three years. This is well below his 11% annual growth forecast for the overall market.
With this information, we can see why Astro Malaysia Holdings Berhad is trading at a lower P/E than the market. Most investors seem to expect limited future growth and are only looking to pay a cut for the stock.
Conclusion of Astro Malaysia Holdings Berhad P/E
While we’re usually careful not to read too much into price/earnings ratios when making investment decisions, they can tell us a lot about what other market participants think of the company.
As we suspected, our examination of analyst forecasts for Astro Malaysia Holdings Berhad reveals that the low earnings outlook contributes to the low P/E ratio. At this stage, investors feel the earnings potential is not great enough to justify a higher P/E ratio. Under these circumstances, it is hard to imagine that stock prices will rise significantly in the near future.
In addition, you should also learn about these Two warning signs found at Astro Malaysia Holdings Berhad.
in these cases Risks require reconsideration of opinion on Astro Malaysia Holdings Berhadexplore an interactive list of high-quality stocks to find out what else is out there.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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