High P/E stocks are generally associated with:
A) mature companies.
B) cyclical companies.
C) young fast-growing companies.
D) defensive companies.

Question

Quizplus · Accepted Answer

High Price-to-Earnings (P/E) ratios are typically associated with young, fast-growing companies. Investors are willing to pay more for these stocks relative to their current earnings because they expect rapid earnings growth in the future.

High P/E Stocks Are Generally Associated With