Compare the tech companies P/E ratios in Figure 8-10 with the traditional companies P/E ratios. Note that
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Compare the tech companies’ P/E ratios in Figure 8-10 with the traditional companies’ P/E ratios. Note that some of the tech companies have very high P/E ratios
(a low P/E is good, a high P/E is bad). Some don’t even have a P/E ratio because they didn’t turn a profit. As a group, list the reasons why the tech companies have such high P/E ratios. Are the prices of these stocks justified given the earnings? Why?
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