Table 26-2

-Refer to Table 26-2.For which company's stock is the P/E ratio closest to what is historically typical?

Question

Table 26-2
 
-Refer to Table 26-2.For which company's stock is the P/E ratio closest to what is historically typical?

Quizplus · Accepted Answer

Based on the historical P/E ratio for each company, the closest to typical is Heinz with a P/E ratio of 19.9, which is only slightly higher than the historical average P/E ratio of 18.7 for the S&P 500. The P/E ratios for Boeing, Eli Lilly, and Kellogg are all significantly higher than the historical average, indicating that they may be overvalued compared to their historical performance.

Table 26-2 -Refer to Table 26-2.For Which Company's Stock Is the P/E