$-7-5$

Why P$/$E ratios vary

$($LO $7-4)$

The price$/$earnings ratios of four companies from the same industry are:

Company

P$/$E Ratio

$\backslash$table$[[$Ingles Markets,$7\mathrm{.}9],[$Kroger$,6\mathrm{.}6],[$Sprouts Farmers Market,$18\mathrm{.}3],[$Weis Markets,$17\mathrm{.}4]]$

Source: Based on closing stock prices on March $17,2019,$ and trailing$-$twelve$-$months earnings per share, both from Yahoo Finance.

Required:

What factors might explain the difference in the P$/$E ratios of these companies?