Corporate management likes their PE to be _____ , while value investors like stocks with _____ P/Es.
A) low, low
B) low, high
C) high, low
D) high, high

Question

Quizplus · Accepted Answer

Corporate management prefers a high Price-to-Earnings (PE) ratio as it indicates that the market values the earnings of the company highly, suggesting a strong growth perspective or a premium on its earnings. On the other hand, value investors seek out stocks with low P/Es, believing they may represent undervalued opportunities that the market has overlooked.

Corporate Management Likes Their PE to Be _____ , While