Yahoo Finance Did Business Growth Power Central European Media Enterprises's (NASDAQ:CETV) Share Price Gain of 113%?
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. For example, the Central European Media Enterprises Ltd. (NASDAQ:CETV) share price has soared 113% in the last half decade. Most would be very happy with that. It's also good to see the share price up 14% over the last quarter.
See our latest analysis for Central European Media Enterprises
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the last half decade, Central European Media Enterprises became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It is of course excellent to see how Central European Media Enterprises has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Central European Media Enterprises's financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Central European Media Enterprises shareholders have received a total shareholder return of 28% over the last year. That gain is better than the annual TSR over five years, which is 16%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before forming an opinion on Central European Media Enterprises you might want to consider these 3 valuation metrics.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
