What would explain why two different companies have different P/E ratios? Price-sales ratios? Price-book ratios?

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Investment Analysis and Portfolio Management

ISBN: 978-1305262997

11th Edition

Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds

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Question Posted: Sep 19, 2019 07:28 AM

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What would explain why two different companies have different P/E ratios? Price-sales ratios? Price-book ratios?

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Differences in PE ratios can be attributed to differences in earnings growth the free cash flow tha...View the full answer

Investment Analysis and Portfolio Management

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