Shenzhen YHLO Biotech's high P/E ratio may not be justified by its growth outlook. Investors may face disappointment if the P/E falls to levels more in line with the growth outlook. The current high share price is seen as unreasonable given the predicted future earnings.
Despite an 8.6% return for shareholders over the last year, caution is urged when biting into Shenzhen YHLO Biotech. The firm's diminishing returns on increasing capital drove concerns of declining financial efficiency.
Shenzhen YHLO Biotech Stock Forum
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