Globant S.A.'s (NYSE:GLOB) Popularity With Investors Is Clear
Globant S.A.'s (NYSE:GLOB) Popularity With Investors Is Clear
Globant S.A.'s (NYSE:GLOB) price-to-earnings (or "P/E") ratio of 49.6x might make it look like a strong 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. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.
With its earnings growth in positive territory compared to the declining earnings of most other companies, Globant has been doing quite well of late. 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. If not, then existing shareholders might be a little nervous about the viability of the share price.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Globant.Does Growth Match The High P/E?
In order to justify its P/E ratio, Globant would need to produce outstanding growth well in excess of the market.
Taking a look back first, we see that the company managed to grow earnings per share by a handy 4.8% last year. This was backed up an excellent period prior to see EPS up by 161% in total over the last three years. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth.
Looking ahead now, EPS is anticipated to climb by 25% each year during the coming three years according to the analysts following the company. With the market only predicted to deliver 10% per year, the company is positioned for a stronger earnings result.
With this information, we can see why Globant 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
We'd say the price-to-earnings ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.
We've established that Globant maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. It's hard to see the share price falling strongly in the near future under these circumstances.
Don't forget that there may be other risks. For instance, we've identified 1 warning sign for Globant that you should be aware of.
Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this free list of companies with a strong growth track record, trading on a low P/E.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Globant S.A. 's(紐約證券交易所代碼:GLOB)市盈率(或 “市盈率”)爲49.6倍,與美國市場相比,目前看上去像是強勁的拋售。在美國,約有一半的公司的市盈率低於16倍,甚至市盈率低於9倍也很常見。但是,市盈率可能相當高是有原因的,需要進一步調查以確定其是否合理。
與大多數其他公司的收益下降相比,Globant的收益增長處於正值區間,最近表現良好。看來許多人預計該公司將繼續克服更廣泛的市場逆境,這增加了投資者購買股票的意願。如果不是,那麼現有股東可能會對股價的可行性有些緊張。
如果你想了解分析師對未來的預測,你應該查看我們關於Globant的免費報告。增長與高市盈率相匹配嗎?
爲了證明其市盈率是合理的,Globant需要實現遠遠超過市場的出色增長。
首先回顧一下,我們發現該公司去年成功地將每股收益增長了4.8%。在過去三年中,每股收益總共增長了161%,此前這是一個很好的時期。因此,股東們可能會對這些中期收益增長率表示歡迎。
根據關注該公司的分析師的說法,展望未來,預計未來三年每股收益將每年增長25%。由於預計市場每年僅增長10%,該公司有望實現更強勁的盈利業績。
有了這些信息,我們可以明白爲什麼Globant的市盈率與市場相比如此之高。顯然,股東們並不熱衷於轉移可能着眼於更繁榮未來的東西。
最後一句話
我們可以說,市盈率的力量主要不是作爲估值工具,而是衡量當前投資者情緒和未來預期。
我們已經確定,Globant之所以維持高市盈率,是因爲其預測的增長將高於整個市場,正如預期的那樣。目前,股東對市盈率感到滿意,因爲他們非常有信心未來的收益不會受到威脅。在這種情況下,很難看到股價在不久的將來會強勁下跌。
別忘了可能還有其他風險。例如,我們已經確定了Globant的1個警告標誌,你應該注意這一點。
當然,通過尋找一些優秀的候選人,你可能會找到一筆不錯的投資。因此,來看看這份增長記錄強勁、市盈率低的公司的免費名單吧。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。
譯文內容由第三人軟體翻譯。
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