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You observe the following on two companies. Company name (Exchange: Equity ticker / symbol) P/E: Michael Kors Holdings Ltd (NYSE:KORS) 10.06 Ralph Lauren Corp (NYSE:RL)

You observe the following on two companies.

Company name (Exchange: Equity ticker / symbol) P/E:

Michael Kors Holdings Ltd (NYSE:KORS) 10.06

Ralph Lauren Corp (NYSE:RL) 15.97

Identify three factors that are likely to explain differences in PE ratios assuming these are comparable firms and explain the relative value that each factor must assume to produce a higher PE ratio for KORS.

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