Amazon and Macy's are retailers. By the end of May 22, 2019, the P/E ratio (Price/Earnings ratio) of Amazon is 77.64 but the P/E ratio of Macy's is only 6.16. Why do the market investors give a very high P/E ratio to Amazon but give a low P/E ratio to Macy's? Please explain.

 

 There are four key financial statements for a company: Balance Sheet, Income Statement, Statement of Retained Earnings, and Statement of Cash Flows. Based on your experience of learning accounting courses, which statement is easier for you to make? Which statement is more difficult for you to make? Please share your opinion and explain why?

Answer rating: 100% (QA)

The difference in the PE ratio between Amazon and Macys can be attributed to several factors 1 Growth expectations Amazon is known for its rapid growt... View the full answer