A relatively low P/E ratio illustrates
A)a correctly priced stock and typically indicates strong future performance.
B)a correctly priced stock and typically indicates weak future performance.
C)a mispriced stock and typically indicates strong future performance.
D)A relatively low P/E ratio has little to do with future performance.

Question

Quizplus · Accepted Answer

a relatively low P/E typically means there won't be strong future performance,but it says nothing about the "correctness" of the stock price.

A Relatively Low P/E Ratio Illustrates