Ansell Limited's (ASX:ANN) Price In Tune With Earnings
Ansell Limited (ASX:ANN) has a P/E ratio of 30x, higher than the Australian market average. Despite a recent 18% EPS growth, the company has seen a 44% decline over three years. Analysts predict a 34% annual EPS growth for the next three years, outpacing the market's 17%. This optimism supports the elevated P/E, indicating investor confidence in future earnings. However, potential risks exist, as highlighted by two warning signs. Overall, the high P/E reflects expectations of strong growth, making a significant price drop unlikely in the near term.
Simplywall·