The booming market in green finance faces a test this year as more investors balk at lofty share price tags. Sharon Bentley-Hamlyn explains why she has 2%-3% of her portfolio in green energy.
“We’d love to have more but it’s difficult to find stocks that meet valuation criteria. We like to buy at 1.5-times PEG ratio or less but many of them are trading near 2-times,” she said, referring to the metric measuring share price, earnings and future growth prospects.
“You don’t want to bet the ranch on these types of businesses which are still loss-making.”
Read the full Reuters article here.