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A consumer products company currently trades at a P/E ratio of 12 times. A high growth technology company is trading at a P/E of 25

A consumer products company currently trades at a P/E ratio of 12 times. A high growth technology company is trading at a P/E of 25 times. Which stock is overpriced relative to its intrinsic value and why?

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The consumer products company because its markets are likely mature and highly competitive

The technology company because it trades at a very high multiple

The consumer products company because it grows much slower than the technology company

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