Why might a high-growth company sell for a higher P/E multiple than a low-growth company?

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Survey Of Accounting

ISBN: 9780073526775

1st Edition

Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay

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Question Posted: May 12, 2024 04:01 AM

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Why might a high-growth company sell for a higher P/E multiple than a low-growth company?

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A highgrowth company may sell for a higher pricetoearnings PE multiple than a lowgrowth company due to several factors related to investors expectatio...View the full answer

Survey Of Accounting

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