Growth shares usually exhibit ________ price-to-book ratios and ________ price-to-earnings ratios.

Question

Quizplus · Accepted Answer

Growth shares typically have high price-to-book ratios because investors are willing to pay more for what they perceive as higher future growth in the company's earnings or assets. Similarly, they often exhibit high price-to-earnings ratios as investors are willing to pay a premium for the expected growth in earnings.

Growth Shares Usually Exhibit ________ Price-To-Book Ratios and ________ Price-To-Earnings

Growth Shares Usually Exhibit Price-To-Book Ratios and Price-To-Earnings