Holcim, Adecco and Mobilezone: cheap, but also good value?
Paul Schibli
Financial Markets
Some shares still appear to be cheap by the usual valuation standards. The question is whether an investment is really worthwhile or whether there are good reasons for the low valuation.
Some shares still appear to be cheap by the usual valuation standards. The question is whether an investment is really worthwhile or whether there are good reasons for the low valuation.
The price/earnings ratio (P/E ratio) is a popular indicator of whether a share is valued low or high, i.e. whether it is cheap or expensive. The share price is set in relation to the estimated profit that the company is expected to make per share in the current or a future year. The principle is that the lower the P/E ratio, the more attractively the share is valued. But what does this mean for its price potential?
The text "Holcim, Adecco and Mobilezone: cheap, but also good value?" (in German only) takes a stand on this issue.
The article was published in «the market» on March 27, 2024.
