The P/E Ratio Approach to Stock Valuation Is Based on

The P/E ratio approach to stock valuation is based on

A) A yearly range of historical P/E ratios resulting in an average expected P/E,an earnings forecast derived from expected growth rates in earnings,and the stock's current P/E
B) The average yearly P/E ratio relative to the market,a yearly range of P/E ratios,and earnings based on an assumed constant growth rate
C) An increasing yearly range of P/E ratios and an earnings forecast based on the EPS of previous years
D) The current P/E ratio compared to the P/E ratio of some market index.