Investors' belief in the company's strong earnings growth may explain the high P/E ratio. However, the company's recent medium-term earnings decline and a P/E higher than the market could disappoint shareholders if the P/E aligns with the negative growth rates.

Despite recent strong earnings, the company's EPS has significantly fallen from three years ago. The P/E ratio may be overvalued considering the recent poor growth rate. Share price may decline if P/E falls to levels matching the negative growth rates.