Current return Comparison Argo return is 3.55%
Median Bank cash deposits returns for 12 months 3.3%
Interest rates are going to fall by about 1%, this will bring bank deposits down to 2% for 12 months deposits.
When bank deposits fall, investment funds have to look for better returns which will push up the stock market.
Effect of bank returns falling to 2% on Argo share price
P/e ratio of 40 is 2.5% return on investment.
Argo current p/e ratio is 26.61 on earning of .30
.30 earning x 40 price $12.00
ARG Price at posting:
$8.03 Sentiment: Hold Disclosure: Held
