The price/earnings ratios of four companies from different industries are: Company ........ P/E Ratio Amazon.com ...... 2,763
Question:
Company ........ P/E Ratio
Amazon.com ...... 2,763
Microsoft ........ 16
Toyota Motors ...... 13
Whole Foods Market .... 41
Required:
What factors might explain the difference in the P/E ratios of these companies?
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In general priceearnings PE ratios are inversely related to risk and positively related to both growth opportunities and earnings quality These firms ...View the full answer
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Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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