With a price-to-earnings (or “P/E”) ratio of 5.3x Asbury Automotive Group, Inc. (NYSE:ABG) may be sending very bullish signals at the moment, given that almost half of all companies in the United States have P/E ratios greater than 17x and even P/E’s higher than 33x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/E.
With its earnings growth in positive territory compared to the declining earnings of…
Comments are closed