See-Saw, Inc., has a P/E ratio of 45, and SloMo Corporation's P/E ratio is 12. Based on these performance measures, which stock do you expect has the better growth prospects?

Question

Quizplus · Accepted Answer

A higher P/E ratio typically indicates that investors expect higher growth prospects for the company, so See-Saw, Inc. with a P/E ratio of 45 is expected to have better growth prospects than SloMo Corporation with a P/E ratio of 12.