D & O Green Technologies Berhad’s (KLSE:D&O) price-to-earnings (or “P/E”) ratio of 48.1x might make it look like a strong sell right now compared to the market in Malaysia, where around half of the companies have P/E ratios below 14x and even P/E’s below 9x are quite common. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s so lofty. With earnings growth that’s superior to most other companies of late, D & O Green Technologies Berhad has been doing relatively well. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. You’d really hope so, otherwise you’re paying a pretty hefty price for no particular reason. See our latest analysis for D & O Green Technologies Berhad KLSE:D&O Price to Earnings Ratio vs Industry January 28th 2025Keen to find out how analysts think D & O Green Technologies Berhad’s future stacks up against the industry? In that case, ourfree report is a great place to start. What Are Growth Metrics Telling Us About The High P/E? D & O Green Technologies Berhad’s P/E ratio would be typical for a company that’s expected to deliver very strong growth, and importantly, perform much better than the market. Taking a look back first, we see that the company grew earnings per share by an impressive 92% last year. Despite this strong recent growth, it’s still struggling to catch up as its three-year EPS frustratingly shrank by 55% overall. Therefore, it’s fair to say the earnings growth recently has been undesirable for the company. Looking ahead now, EPS is anticipated to climb by 78% during the coming year according to the five analysts following the company. With the market only predicted to deliver 17%, the company is positioned for a stronger earnings result. With this information, we can see why D & O Green Technologies Berhad is trading at such a high P/E compared to the market. Apparently shareholders aren’t keen to offload something that is potentially eyeing a more prosperous future. The Final Word Using the price-to-earnings ratio alone to determine if you should sell your stock isn’t sensible, however it can be a practical guide to the company’s future prospects. As we suspected, our examination of D & O Green Technologies Berhad’s analyst forecasts revealed that its superior earnings outlook is contributing to its high P/E. At this stage investors feel the potential for a deterioration in earnings isn’t great enough to justify a lower P/E ratio. It’s hard to see the share price falling strongly in the near future under these circumstances. And what about other risks? Every company has them, and we’ve spotted 1 warning sign for D & O Green Technologies Berhad you should know about. If P/E ratios interest you, you may wish to see this free collection of other companies with strong earnings growth and low P/E ratios. New: Manage All Your Stock Portfol
Gio. Gen 30th, 2025
