Rapidly growing companies tend to have P/E ratios above those of speculative companies.

Name: Rapidly growing companies tend to have P/E ratios above those of speculative companies.
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Speculative companies often have higher P/E ratios than rapidly growing companies because their earnings potential is viewed as uncertain and potentially higher in the future, leading to inflated valuations based on speculation rather than current earnings.

Rapidly Growing Companies Tend to Have P/E Ratios Above Those