<div id="readability-page-1"><div><p>When close to half the companies in Switzerland have price-to-earnings ratios (or &#34;P/E's&#34;) below 19x, you may consider <strong>Givaudan SA </strong>(VTX:GIVN) as a stock to potentially avoid with its 28.1x P/E ratio.  Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E.</p> <p>This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.</p> <p> With earnings growth that's inferior to most other companies of late, Givaudan has been relatively sluggish.   It might be that many expect the uninspiring earnings performance to recover significantly, which has kept the P/E from collapsing.  If not, then existing shareholders may be very nervous about the viability of the share price.     </p><p><span> Check out our latest analysis for Givaudan </span></p><figure><img height="650" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/1511174-pe-multiple-vs-industry-1-dark-2/1764302843199?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/1511174-pe-multiple-vs-industry-1-dark-2/1764302843199"/><figcaption>SWX:GIVN Price to Earnings Ratio vs Industry November 28th 2025</figcaption></figure><p> Keen to find out how analysts think Givaudan's future stacks up against the industry? In that case, our <strong>free </strong>report is a great place to start. </p><h2> What Are Growth Metrics Telling Us About The High P/E?  </h2><p> Givaudan's P/E ratio would be typical for a company that's expected to deliver solid growth, and importantly, perform better than the market.  </p><p> Taking a look back first, we see that the company managed to grow earnings per share by a handy 6.0% last year.   The latest three year period has also seen an excellent 40% overall rise in EPS, aided somewhat by its short-term performance.  Therefore, it's fair to say the earnings growth recently has been superb for the company.   </p> <p> Turning to the outlook, the next three years should generate growth of 5.2%  per year as estimated by the analysts watching the company.  Meanwhile, the rest of the market is forecast to expand by 12% per annum, which is noticeably more attractive. </p><p> In light of this, it's alarming that Givaudan's P/E sits above the majority of other companies.  Apparently many investors in the company are way more bullish than analysts indicate and aren't willing to let go of their stock at any price.  There's a good chance these shareholders are setting themselves up for future disappointment if the P/E falls to levels more in line with the growth outlook.  </p> <h2> The Bottom Line On Givaudan's P/E </h2><p> While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations. </p><p> Our examination of Givaudan's analyst forecasts revealed that its inferior earnings outlook isn't impacting its high P/E anywhere near as much as we would have predicted.  Right now we are increasingly uncomfortable with the high P/E as the predicted future earnings aren't likely to support such positive sentiment for long.  Unless these conditions improve markedly, it's very challenging to accept these prices as being reasonable.     </p><p> It's always necessary to consider the ever-present spectre of investment risk. We've identified<strong> 1 warning sign with Givaudan</strong>, and understanding  should be part of your investment process.  </p><p>If you're <strong>unsure about the strength of Givaudan's business</strong>, why not explore our interactive list of stocks with solid business fundamentals for some other companies you may have missed.</p></div></div>

GVDNY

<p>Givaudan SA's P/E ratio of 28.1x is high compared to other Swiss companies, raising concerns due to its sluggish earnings growth. Despite past EPS growth, future growth is expected to lag behind the market, questioning the sustainability of its current P/E ratio.</p>

Subdued Growth No Barrier To Givaudan SA's (VTX:GIVN) Price