Corporación América Airports S.A.'s (NYSE:CAAP) price-to-earnings (or "P/E") ratio of 6.8x might make it look like a strong buy right now compared to the market in the United States, where around half of the companies have P/E ratios above 18x and even P/E's above 33x are quite common. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so limited.
With its earnings growth in positive territory compared to the declining earnings of most other companies, Corporación América Airports has been doing quite well of late. It might be that many expect the strong earnings performance to degrade substantially, possibly more than the market, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.
NYSE:CAAP Price to Earnings Ratio vs Industry August 23rd 2024 Keen to find out how analysts think Corporación América Airports' future stacks up against the industry? In that case, our free report is a great place to start.
How Is Corporación América Airports' Growth Trending?
There's an inherent assumption that a company should far underperform the market for P/E ratios like Corporación América Airports' to be considered reasonable.
Retrospectively, the last year delivered an exceptional 116% gain to the company's bottom line. Although, its longer-term performance hasn't been as strong with three-year EPS growth being relatively non-existent overall. Accordingly, shareholders probably wouldn't have been overly satisfied with the unstable medium-term growth rates.
Shifting to the future, estimates from the two analysts covering the company suggest earnings should grow by 15% each year over the next three years. Meanwhile, the rest of the market is forecast to only expand by 10% per year, which is noticeably less attractive.
In light of this, it's peculiar that Corporación América Airports' P/E sits below the majority of other companies. Apparently some shareholders are doubtful of the forecasts and have been accepting significantly lower selling prices.
What We Can Learn From Corporación América Airports' P/E?
It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
Our examination of Corporación América Airports' analyst forecasts revealed that its superior earnings outlook isn't contributing to its P/E anywhere near as much as we would have predicted. When we see a strong earnings outlook with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. At least price risks look to be very low, but investors seem to think future earnings could see a lot of volatility.
Don't forget that there may be other risks. For instance, we've identified 2 warning signs for Corporación América Airports that you should be aware of.
If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Corporación América Airports S.A.(纽交所:CAAP)的市盈率为6.8倍,与美国市场上约一半公司的市盈率高达18倍以上,甚至33倍以上的市盈率相比,看起来可能是一个强烈的买入信号。尽管如此,仅凭市盈率就盲目投资是不明智的,因为可能有解释为什么这么有限。
与大多数其他公司的盈利下降相比,Corporación América Airports的盈利增长处于正面区域。最近表现相当不错。可能是许多人预期该强劲的盈利表现会大幅下滑,可能会比市场更加抑制市盈率。如果你喜欢这家公司,你可能会希望情况不是这样,这样你就有可能在它不受青睐的时候买入一些股票。
纽交所:CAAP市盈率与行业板块2024年8月23日的比较 渴望了解分析师如何认为Corporación América Airports的未来与行业板块相比如何吗?如果是这样,我们的免费报告是一个很好的起点。
Corporación América Airports的增长趋势如何?
有一个固有的假设,即一家公司的市盈率像Corporación América Airports这样低,才能被认为是合理的,跑输市场。
鉴于此,值得注意的是,Corporación América Airports的市盈率低于大多数其他公司。显然,一些股东对预测持怀疑态度,并接受了明显较低的售价。
从Corporación América Airports的市盈率中我们可以学到什么呢?
有人认为,市盈率是某些行业内价值的劣质测量,但它可以是一个强有力的企业情绪指标。
我们对Corporación América Airports的分析师预测进行的检查显示,其优秀的盈利前景并没有像我们预期的那样对市盈率产生很大影响。当我们看到强劲的盈利前景和高于市场增长率时,我们会认为潜在风险可能对市盈率施加了重大压力。至少价格风险似乎非常低,但投资者似乎认为未来的盈利可能会面临很大的波动。