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You calculate P/Es for 3 stocks in an industry and get 217.0, 5.2 and 8.6. What could be possible reasons for the outlier (217.0)? a.
You calculate P/Es for 3 stocks in an industry and get 217.0, 5.2 and 8.6. What could be possible reasons for the outlier (217.0)? a. The companys earnings suffered a one-time dip for a change in accounting method on its inventory. b. The company is relatively young, and its earnings are close to zero. c. The companys product is considered the next big thing and was named hottest stock by Valuation magazine. d. Any or all of the above.
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