O’Reilly Automotive, Inc.’s (NASDAQ:ORLY) price-to-earnings (or “P/E”) ratio of 24x might make it look like a sell right now compared to the market in the United States, where around half of the companies have P/E ratios below 16x and even P/E’s below 9x are quite common. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
With its earnings growth in positive territory compared to the declining earnings of most other…
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