What has the typical price-earnings ratio been historically?
A)about 3
B)about 8
C)about 15
D)about 20

Question

Quizplus · Accepted Answer

The typical price-earnings ratio (P/E ratio) historically has been around 15. This means that investors were willing to pay $15 for every $1 of earnings that a company produced. This is considered a moderate level of valuation. However, it is important to note that different industries and companies may have different P/E ratios based on their growth prospects, earnings stability, and risk profile.

What Has the Typical Price-Earnings Ratio Been Historically