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The price/earnings ratios of four companies from the same industry are: Company P/E Ratio Ingles Markets 7.9 Kroger 6.6 Sprouts Farmers Market 18.3 Weis Markets

The price/earnings ratios of four companies from the same industry are:

Company

P/E Ratio

Ingles Markets

7.9

Kroger

6.6

Sprouts Farmers Market

18.3

Weis Markets

17.4

Source:Based on closing stock prices on March 17, 2019, and trailing-twelve-months

earnings per share, both from Yahoo Finance.

What factors might explain the difference in the P/E ratios of these companies?

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