<div id="readability-page-1"><div>Goodwin PLC (LON:GDWN) shares have continued their recent momentum with a 27% gain in the last month alone. The last month tops off a massive increase of 189% in the last year. After such a large jump in price, given close to half the companies in the United Kingdom have price-to-earnings ratios (or &#34;P/E's&#34;) below 16x, you may consider Goodwin as a stock to avoid entirely with its 59.8x P/E ratio. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty. Trump has pledged to &#34;unleash&#34; American oil and gas and these 15 US stocks have developments that are poised to benefit. Recent times have been quite advantageous for Goodwin as its earnings have been rising very briskly. 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. If not, then existing shareholders might be a little nervous about the viability of the share price. See our latest analysis for Goodwin <figure><img height="650" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/878860-pe-multiple-vs-industry-1-dark-2/1764133248645?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1640" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/878860-pe-multiple-vs-industry-1-dark-2/1764133248645"/><figcaption>LSE:GDWN Price to Earnings Ratio vs Industry November 26th 2025</figcaption></figure> 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 Goodwin's earnings, revenue and cash flow. <h2> Does Growth Match The High P/E? </h2> In order to justify its P/E ratio, Goodwin would need to produce outstanding growth well in excess of the market. Taking a look back first, we see that the company grew earnings per share by an impressive 46% last year. The latest three year period has also seen an excellent 93% overall rise in EPS, aided by its short-term performance. Accordingly, shareholders would have probably welcomed those medium-term rates of earnings growth. Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 20% shows it's noticeably more attractive on an annualised basis. With this information, we can see why Goodwin is trading at such a high P/E compared to the market. Presumably shareholders aren't keen to offload something they believe will continue to outmanoeuvre the bourse. <h2> The Final Word </h2> The strong share price surge has got Goodwin's P/E rushing to great heights as well. Using the price-to-earnings ratio alone to determine if you should sell your stock isn't sensible, however it can be a practical guide to the company's future prospects. We've established that Goodwin maintains its high P/E on the strength of its recent three-year growth being higher than the wider market forecast, as expected. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. If recent medium-term earnings trends continue, it's hard to see the share price falling strongly in the near future under these circumstances. And what about other risks? Every company has them, and we've spotted 2 warning signs for Goodwin (of which 1 is concerning!) you should know about. Of course, you might also be able to find a better stock than Goodwin. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.</div></div>

GDWN

Goodwin PLC's stock has surged 27% in the last month, capping a 189% increase over the past year. Despite a high P/E ratio of 59.8x, the company's strong earnings growth, with a 46% rise in EPS last year and 93% over three years, justifies investor confidence. The market expects Goodwin's performance to continue outpacing the broader market, supporting its elevated P/E ratio.

Earnings Tell The Story For Goodwin PLC (LON:GDWN) As Its Stock Soars 27%