Avino Silver & Gold Mines Ltd. (TSE:ASM) shareholders are no doubt pleased to see that the share price has bounced 30% in the last month, although it is still struggling to make up recently lost ground. The last month tops off a massive increase of 161% in the last year.
Since its price has surged higher, Avino Silver & Gold Mines may be sending very bearish signals at the moment with a price-to-earnings (or “P/E”) ratio of 45.8x, since almost half of all companies in Canada have P/E ratios under 14x and even P/E’s lower than 8x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly elevated P/E.
Avino Silver & Gold Mines certainly has been doing a good job lately as it’s been growing earnings more than most other companies. It seems that many are expecting the strong earnings performance to persist, which has raised the P/E. If not, then existing…
