With a price-to-earnings (or “P/E”) ratio of 17.4x Calibre Mining Corp. (TSE:CXB) may be sending bearish signals at the moment, given that almost half of all companies in Canada have P/E ratios under 13x and even P/E’s lower than 7x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
Recent times have been pleasing for Calibre Mining as its earnings have risen in spite of the market’s earnings going into reverse. It seems that many are expecting the company to continue defying the broader market adversity, which has increased investors’ willingness to pay up for the stock. You’d really hope so, otherwise you’re paying a pretty hefty price for no particular reason.
See our latest analysis for Calibre Mining
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