Digital China Information Service Group's high P/E ratio is due to investors' expectations of strong future growth. Despite recent earnings decline, investors don't foresee further deterioration, contributing to the high P/E ratio.
Despite recent struggles, the company's high P/E ratio is justified by a superior earnings outlook. Investors' optimism, undeterred by potential earnings deterioration, supports the share price.
The EPS and share price drop disparity shows market's possible lack of deep concern or prior accounting for the decline. An 8.6% recent total shareholder return (including dividend) indicates potential business momentum.
Despite negative trends suggesting Digital China Information Service Group is past its growth phase, the stock upped 18% in five years. Yet, with a bearish outlook, better investments might be elsewhere.
Digital China Information Service Group Stock Forum
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