Regarding a forward P/E of around 16x, which is considered a benchmark for the stock price downside, some view the “appropriate level” as changing with overall market movements, making the assessment prone to being determined after the fact.
Strategist Haganuma Chisato (芳賀沼千里) points out that the P/E level considered appropriate changes with overall market trends, suggesting that it may not be appropriate to conclude that a forward P/E of around 16x alone provides a downside benchmark.
The article emphasizes that interpreting P/E as a downside benchmark depends on market conditions, and that the assessment may change depending on the timing and circumstances.
The photo credit is Bloomberg. Haganuma’s view is introduced as the main source, and the article discusses how this assessment may change in the context of the broader market.