Investors justify Chengdu Jiafaantai Education Technology Co.,Ltd.'s high P/E ratio due to strong future growth expectations. Shareholders' confidence in future earnings keeps them comfortable with the P/E, making a significant share price drop unlikely soon.
The company's EPS drop is linked to its share price decline, indicating market views remain steady. Performance deterioration over the past year and 1 warning sign in investment analysis are concerning.
Investors are accepting the high P/E ratio due to the belief in strong future growth for the company outperforming the wider market. They expect these conditions to continue to provide strong support to the share price.
Investing for growth may yield positive long-term stock performance despite short-term returns diminishing. The 17% gain in the last five years indicates investor recognition of these prospects, signaling possible future investment possibilities.
Chengdu Jiafaantai Education Technology Stock Forum
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