BAL may compare well to A2M in some respects, although critically not in terms of profitability nor distance from insolvency.
While A2M has a PE of 46, its also important to remember that this is based on statutory earnings, while BALs still high PE of 33 is based on normalised earnings which is another way of saying what they would have liked to have earned if things were going better than what was the reality. I'd take A2M's 46x PE over that in a second. BALs statutory PE was negative, because they were not profitable.
However there are many who say that the China infant formula market is overpriced already considering the number of international players involved who are already eating into each others market shares by varying degrees - signs of a maturing marketplace whose combined PE should probably be much lower than it is since certainly not all those involved can meet that required growth - so by only comparing within that industry you could well be ending up with only the best of a bad bunch. BALs reputation has also been tarnished now so they are also starting this final leg of the race on the wrong foot.
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