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Not Many Are Piling Into Aurora World Corporation (KOSDAQ:039830) Stock Yet As It Plummets 26%

Simply Wall St · 1d ago

Aurora World Corporation (KOSDAQ:039830) shareholders that were waiting for something to happen have been dealt a blow with a 26% share price drop in the last month. The good news is that in the last year, the stock has shone bright like a diamond, gaining 179%.

Although its price has dipped substantially, Aurora World may still be sending bullish signals at the moment with its price-to-earnings (or "P/E") ratio of 9.2x, since almost half of all companies in Korea have P/E ratios greater than 14x and even P/E's higher than 30x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's limited.

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Aurora World certainly has been doing a great job lately as it's been growing earnings at a really rapid pace. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If that doesn't eventuate, then existing shareholders have reason to be quite optimistic about the future direction of the share price.

See our latest analysis for Aurora World

pe-multiple-vs-industry
KOSDAQ:A039830 Price to Earnings Ratio vs Industry December 4th 2025
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Aurora World will help you shine a light on its historical performance.

Is There Any Growth For Aurora World?

There's an inherent assumption that a company should underperform the market for P/E ratios like Aurora World's to be considered reasonable.

If we review the last year of earnings growth, the company posted a terrific increase of 175%. Pleasingly, EPS has also lifted 177% in aggregate from three years ago, thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing earnings over that time.

This is in contrast to the rest of the market, which is expected to grow by 37% over the next year, materially lower than the company's recent medium-term annualised growth rates.

With this information, we find it odd that Aurora World is trading at a P/E lower than the market. Apparently some shareholders believe the recent performance has exceeded its limits and have been accepting significantly lower selling prices.

The Final Word

Aurora World's P/E has taken a tumble along with its share price. While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations.

Our examination of Aurora World revealed its three-year earnings trends aren't contributing to its P/E anywhere near as much as we would have predicted, given they look better than current market expectations. When we see strong earnings with faster-than-market growth, we assume potential risks are what might be placing significant pressure on the P/E ratio. It appears many are indeed anticipating earnings instability, because the persistence of these recent medium-term conditions would normally provide a boost to the share price.

Before you settle on your opinion, we've discovered 2 warning signs for Aurora World that you should be aware of.

It's important to make sure you look for a great company, not just the first idea you come across. So take a peek at this free list of interesting companies with strong recent earnings growth (and a low P/E).