Shannon Semiconductor's high P/E ratio is worrisome due to its anticipated earnings drop. Despite market's predicted 41% growth, the company's outlook is bleak. Investors may hope for a business turnaround, but declining earnings could impact share price.

Although earnings may slump, the firm's P/E ratio aligns with most companies. Investors disregard analysts' gloom, holding onto shares. Declining earnings might, however, hinder the share price, rendering the current P/E unsustainable.

The EPS growth lagging behind share price increase indicates a positive market sentiment towards the company with consistent growth. An optimistic P/E ratio and positive total shareholder return figures, driven by dividends and improved recent TSR, further corroborate this outlook.