Petroleo Brasileiro SA, commonly known as Petrobras (BOVESPA: PETR), was once labeled “the most expensive oil company” by Bloomberg.com. Data for Petrobras and the oil industry, including the trailing twelve-month (TTM) P/E and payout ratios, follow.

Explain how the information shown supports a higher P/E for Petrobras than for the industry.

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Petrobras Industry P/E ratio (TTM) 11.77 7.23 Payout ratio (TTM) (%) 24.40 21.66 EPS five-year growth rate (%) 26.35 15.46 EPS (MRQ) vs. Qtr. 1 yr. ago (% change) -41.44 -127.53