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Sarah is a recent college graduate who is joining First Boston as a new equity analyst. She is looking at the stock of ASML Holdings.
Sarah is a recent college graduate who is joining First Boston as a new equity analyst. She is looking at the stock of ASML Holdings. ASML makes equipment for manufacturing silicon chips. The company has been growing at 20% a year for the last 10 years. She thinks the chip manufacturing industry is maturing and this will cause the company's growth rate will drift toward 10% going forward. What will happen to the P/E ratio of ASML stock if Sarah is correct? Stay the same Increase Decrease
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