标题: P/E Ratio and growth firms [打印本页] 作者: slackeranalyst 时间: 2011-7-11 18:23 标题: P/E Ratio and growth firms
If I remember correctly growth firms have low P/E ratios? If we did a stock screen for low P/E ratos we would most likely end up excluding too many growth firms from the sample because high expected earnings growth leads to high P/Es? Any thoughts?作者: JGovender 时间: 2011-7-11 18:23
growth stocks have high p/e ratios because they have expectations of high growth rates which translate to higher relative prices作者: Flok 时间: 2011-7-11 18:23
You are correct. High P/E are growth stocks and Low P/E are value stocks. Thanks.
