Discuss the factors that might explain the differences in the price earnings ratios of the three companies below and the changes that have occurred in their price earnings ratios over the period. (The companies have been chosen with a range of P/E ratios, to give with a relatively low value, one with a relatively high value, and another with a middling value. Although not necessary, firms from the same industry helps for comparison reasons) You should use the insights provided by valuation models on the determinants of the price earnings ratios in your discussion, but you should also discuss the role of any other factors that might influence the reported values of price-earnings ratios of the companies you have chosen.

5.4 7.1 Name EPS 2008 2009 2010 2011 2012 2013 2014 2015 BT GROUP PRICE P/E RATIO EPS 0.24 2.73 11.3 0.25 1.35 0.19 1.35 0.2 1.81 9.1 0.22 1.91 8.6 0.25 2.31 0.27 3.79 14.1 0.3 4.02 13.5 BURBERRY GROUP PRICE P/E RATIO EPS 0.32 5.69 17.9 0.33 2.22 6.7 0.28 5.99 21 0.43 11.24 26.1 0.56 11.85 21.3 0.53 12.26 23 0.71 15.16 21.4 0.74 16.36 RANDGOLD RESOURCES PRICE P/E RATIO 0.28 18.47 67.2 0.42 29.48 74.2 0.37 50 136.9 0.8 52.75 66.8 2.03 65.85 32.8|| 59.5 20.8 37.9 18.1 1.85 43.8 0,2 1.81 9.4 2.85 2.09 22.2 23.7||