RE: PEHello Cozzi:
Actually, the P/E ratio is much lower than 7. NBD report their earnings in US dollars, but their stock (on the TSE) is quoted in canadian dollars. If they turn in a profit of $1.5 US for the year and assuming a currency conversion rate of $0.82 US/$CDN, the earnings in CDN $ would be $1.83. At a share price of $10.3 this makes a P/E of 5.63. Why is the stock price at such a level? I suppose that the market (or at least some players) anticipate lower earnings in the future.
Good luck.
Carlo