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You are told that a growth company has a P/E ratio of 13 times and a growth rate of15 percent compared to the aggregate market,
You are told that a growth company has a P/E ratio of 13 times and a growth rate of15 percent compared to the aggregate market, which has a growth rate of 8 percent
and a P/E ratio of 16 times.
What does this comparison imply regarding the growth
company?
What else do you need to know to properly compare the growth company
to the aggregate market?
Please give a detailed and understandable explanation for a great rating. Thank you!
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