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An investor is analyzing two stocks: S1 and S2. The P/E ratio of S1 is 30, and the P/E ratio of S2 is 170. The
An investor is analyzing two stocks: S1 and S2. The P/E ratio of S1 is 30, and the P/E ratio of S2 is 170. The investor concludes that S2 is relatively overvalued due to its substantially higher P/E ratio. Which of the following information can make this conclusion more convincing?
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S1 and S2 have a similar growth potential
S1 and S2 have a similar price per share
S1 and S2 have a similar earnings per share
S1 and S2 have a similar dividend per share
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