With a price-to-earnings ratio of 8.2x Townsquare Media, investor watchdog blog Simply Wall St. says the local media company that puts digital first “may be sending bullish signals at the moment,” given that almost half of all companies in the United States have P/E ratios greater than 16x. Even P/E’s higher than 31x are not unusual.
However, the blog notes that it isn’t wise to just take the P/E at face value as there may be an explanation as to why it is “limited.”
Does this mean that Townsquare may not be as “mispriced” as Simply Wall St. thinks?
