WEBULL

E. Pairis S.A.'s (ATH:PAIR) Business Is Yet to Catch Up With Its Share Price

Simply Wall St · 2d ago

With a price-to-earnings (or "P/E") ratio of 20.1x E. Pairis S.A. (ATH:PAIR) may be sending bearish signals at the moment, given that almost half of all companies in Greece have P/E ratios under 14x and even P/E's lower than 9x 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 as high as it is.

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With earnings growth that's exceedingly strong of late, E. Pairis has been doing very well. It seems that many are expecting the strong earnings performance to beat most other companies over the coming period, which has increased investors’ willingness to pay up for the stock. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

View our latest analysis for E. Pairis

pe-multiple-vs-industry
ATSE:PAIR Price to Earnings Ratio vs Industry December 13th 2025
We don't have analyst forecasts, but you can see how recent trends are setting up the company for the future by checking out our free report on E. Pairis' earnings, revenue and cash flow.

Does Growth Match The High P/E?

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

Retrospectively, the last year delivered an exceptional 170% gain to the company's bottom line. However, this wasn't enough as the latest three year period has seen a very unpleasant 41% drop in EPS in aggregate. Therefore, it's fair to say the earnings growth recently has been undesirable for the company.

Weighing that medium-term earnings trajectory against the broader market's one-year forecast for expansion of 11% shows it's an unpleasant look.

With this information, we find it concerning that E. Pairis is trading at a P/E higher than the market. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as a continuation of recent earnings trends is likely to weigh heavily on the share price eventually.

The Final Word

Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.

Our examination of E. Pairis revealed its shrinking earnings over the medium-term aren't impacting its high P/E anywhere near as much as we would have predicted, given the market is set to grow. Right now we are increasingly uncomfortable with the high P/E as this earnings performance is highly unlikely to support such positive sentiment for long. If recent medium-term earnings trends continue, it will place shareholders' investments at significant risk and potential investors in danger of paying an excessive premium.

Before you take the next step, you should know about the 3 warning signs for E. Pairis (2 are a bit concerning!) that we have uncovered.

You might be able to find a better investment than E. Pairis. If you want a selection of possible candidates, check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).