Stock valuation based on the relationship between a stock's P/E ratio and the market may result in superior returns if:

Name: Stock valuation based on the relationship between a stock's P/E ratio and the market may result in superior returns if:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This company may be poised for a growth surge, in which case, earnings in the long term will grow, increasing the P/E ratio. While it appears the company is down, investors look for undervalued stock to buy so they can take advantage of the growth surge.

Stock Valuation Based on the Relationship Between a Stock's P/E