Why does CTRP deserve a p/e higher than LFC, FMCN and as high as BIDU forward p/e?
bidu and fmcn are also good stocks imo.besides decent growth, ctrp is having proven business model, in relatively long term stable sector, solid management. That is probably why it is having a forwarding p/e around 40.
The expansion of p/e is the result of exploding Chinese stock markets - just like the p/e expansion, or lack of it, during the late 90,s in the USA.
what is the growth rate of LFC??
1yr growth LFC CTRPSALES - 50% 49%EPS - 114% 4.61%
that's exactly why most people think this stock is overpriced.