Which type of company would have a high P/E ratio?

Question

Quizplus · Accepted Answer

A high P/E (price-to-earnings) ratio typically signifies that investors have high expectations for a company's future earnings growth. This would generally be the case for a respected growth company that is expected to continue expanding and delivering strong profits. Companies on the verge of failure or mature companies may have lower P/E ratios, while new companies may not have a P/E ratio at all due to lack of historical earnings data.

Which Type of Company Would Have a High P/E Ratio