WEBULL

Buligo Capital Ltd's (TLV:BLGO) 31% Share Price Surge Not Quite Adding Up

Simply Wall St · 2d ago

Buligo Capital Ltd (TLV:BLGO) shares have continued their recent momentum with a 31% gain in the last month alone. The last 30 days bring the annual gain to a very sharp 41%.

After such a large jump in price, Buligo Capital may be sending very bearish signals at the moment with a price-to-earnings (or "P/E") ratio of 66x, since almost half of all companies in Israel have P/E ratios under 15x and even P/E's lower than 11x are not unusual. However, the P/E might be quite high for a reason and it requires further investigation to determine if it's justified.

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For example, consider that Buligo Capital's financial performance has been poor lately as its earnings have been in decline. One possibility is that the P/E is high because investors think the company will still do enough to outperform the broader market in the near future. If not, then existing shareholders may be quite nervous about the viability of the share price.

Check out our latest analysis for Buligo Capital

pe-multiple-vs-industry
TASE:BLGO Price to Earnings Ratio vs Industry December 29th 2025
Want the full picture on earnings, revenue and cash flow for the company? Then our free report on Buligo Capital will help you shine a light on its historical performance.

What Are Growth Metrics Telling Us About The High P/E?

Buligo Capital's P/E ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the market.

Retrospectively, the last year delivered a frustrating 54% decrease to the company's bottom line. This means it has also seen a slide in earnings over the longer-term as EPS is down 86% in total over the last three years. Accordingly, shareholders would have felt downbeat about the medium-term rates of earnings growth.

Comparing that to the market, which is predicted to deliver 23% growth in the next 12 months, the company's downward momentum based on recent medium-term earnings results is a sobering picture.

In light of this, it's alarming that Buligo Capital's P/E sits above the majority of other companies. 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 Bottom Line On Buligo Capital's P/E

Buligo Capital's P/E is flying high just like its stock has during the last month. 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 Buligo Capital 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. When we see earnings heading backwards and underperforming the market forecasts, we suspect the share price is at risk of declining, sending the high P/E lower. 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.

And what about other risks? Every company has them, and we've spotted 3 warning signs for Buligo Capital (of which 1 is potentially serious!) you should know about.

If these risks are making you reconsider your opinion on Buligo Capital, explore our interactive list of high quality stocks to get an idea of what else is out there.