I’m analyzing a company that, based on consensus from 3 brokers, will have 40% annualized EPS growth over the next 3 years. However, the 12m forward PE multiple is only 15x (T12m PE is 21x).
Can anyone explain why a stock could have such high projected EPS growth but such a conservative PE multiple?
why don’t you put all your questions in one post instead of three separate posts -_-.
What’s the ticker? Could be small-cap, could be that those earnings are very risky (thus not warranting a higher multiple), could be one time items, could be growing in a secular declining business, etc… There’s too little information here.
low multiple = low growth, high risk, high capital requirements
Yeah also, how old is the company, rather what stage is it in the company life cycle? P/Es in a forward looking context really do not offer a lot value in my opinion. I often see it as being very open to manipulation and more than likely, going to be incorrect when the future actually arrives.
Are TTM figures for EPS and P/E markedly different than the future? If so, what’s the catalyst driving these assumption. The more information provided the better 
Sorry, just saw you provided the TTM P/E, but yes I would want to know why the huge jump in earnings holding price constant.
Thanks guys. Yes the stock is small-cap. The ticker is 198 HK. Any insights to gain from looking at the stock’s details?
Goodwill is ~42% of net assets, and is greater than PP&E. Revenue sounds good and well positioned to grow, but management is pouring cash on the ground, urinating on it, and hoping a money tree sprouts up.