China Yuchai International Limited (NYSE:CYD) has seen its stock price jump 26% recently, contributing to a 341% gain over the last year. Despite a seemingly high P/E ratio of 27.9x compared to the market average, the company’s strong past earnings growth of 40% in the last year and anticipated future EPS growth of 28% per year over the next three years (outpacing the market’s 12%) suggest its high P/E is justified by positive investor expectations for continued strong performance.
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China Yuchai International Limited (NYSE:CYD) Stocks Shoot Up 26% But Its P/E Still Looks Reasonable
China Yuchai International Limited (NYSE:CYD) has seen its stock price jump 26% recently, contributing to a 341% gain over the last year. Despite a seemingly high P/E ratio of 27.9x compared to the market average, the company’s strong past earnings growth of 40% in the last year and anticipated future EPS growth of 28% per year over the next three years (outpacing the market’s 12%) suggest its high P/E is justified by positive investor expectations for continued strong performance.