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An analyst notices that two companies in the same industry have significantly different P E ratios. What could be a critical mistake if the analyst

An analyst notices that two companies in the same industry have significantly different

\frac{P}{E}

ratios. What could be a critical mistake if the analyst uses relative valuation to compare them?

Eocusing on the PJE ratios too much

Assuming that the companies are identical in growth prospects and risk profle ignoring the future earnings of the companies

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