High P/E ratios tend to indicate that a company will _______,ceteris paribus.

Name: High P/E ratios tend to indicate that a company will _______,ceteris paribus.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high P/E ratio generally indicates that investors have high expectations for the future growth of the company. This can be due to strong earnings growth, innovation, and market dominance, among other factors. Therefore, all else being equal, a high P/E ratio suggests that a company will grow quickly.

High P/E Ratios Tend to Indicate That a Company Will