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Several investors are still ignoring ASE Technology Holding Co., Ltd. (TWSE:3711)


ASE Technology Holding Co., Ltd. is trading at a P/E ratio of 21.5x, which may seem high compared to the industry average of 20x in Taiwan. Despite this, there could be potential for growth or setbacks that investors might be overlooking. The company has seen declining earnings in the past year, with profits falling by 16%. This trend has been consistent over the last three years, with EPS down 25% in total.

Analysts forecast a 31% growth in earnings for ASE Technology Holding in the coming year, outperforming the market prediction of 25%. This positive outlook should ideally reflect in the company’s P/E ratio, but it seems that investors remain skeptical, leading to lower selling prices. There could be hidden threats to earnings that are preventing the P/E ratio from reflecting the optimistic forecast.

While the risk of a price drop appears to be low, there may be potential volatility in future earnings. Investors are advised to consider these factors before making any decisions. For those interested in exploring alternative investment options, it is recommended to look at companies with reasonable P/E ratios and strong earnings growth.

Ultimately, the P/E ratio is just one measure of value and should not be the sole determinant of investment decisions. Analyst forecasts and a thorough understanding of company performance are essential in making informed choices. Investors are encouraged to conduct further research and seek professional advice as needed.

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