TSE:7211Auto
Mitsubishi Motors (TSE:7211) Stock Trades Below DCF As 44x P/E Looms
Mitsubishi Motors stock closed at ¥351.5 after a choppy week that left the 7 day return down about 6%, even as the 90 day return remained positive. That short term wobble coincides with an earnings release where the main focus is on valuation pressure. The company is carrying a P/E of 44x while earnings over the past year have been weak and distorted by a large one off loss. At the same time the shares trade below an estimated discounted cash flow value, which sets up an active debate on how...