A stock that has a high price-to-earnings ratio and a high price-to-book ratio is an indicator of a stock that is definitely overvalued.

Question

Quizplus · Accepted Answer

A high price-to-earnings (P/E) ratio and a high price-to-book (P/B) ratio might indicate that a stock is overvalued, but they can also suggest that investors expect high growth rates in the future. These ratios alone do not definitively determine if a stock is overvalued without considering other factors such as the company's growth prospects, industry conditions, and overall market environment.

A Stock That Has a High Price-To-Earnings Ratio and a High