Posted 2/3/2024, 7:16:51 AM
Fresenius Medical Care's High P/E Ratio Reflects Confidence in Expected Earnings Growth, But Risks Remain
- Fresenius Medical Care's P/E ratio is high compared to other German companies, indicating potential issues or high expected growth
- The company's earnings have declined faster than others recently, making investors nervous
- Analysts estimate 40% earnings growth over the next 3 years, much higher than the overall market
- Investors are comfortable with the high P/E due to confidence in future earnings growth
- The outlook supports Fresenius' current stock price, but risks still exist to monitor