The price/earnings ratios of four companies from different industries are: Company ........ P/E Ratio Amazon.com ...... 2,763

Question:

The price/earnings ratios of four companies from different industries are:
Company ........ P/E Ratio
Amazon.com ...... 2,763
Microsoft ........ 16
Toyota Motors ...... 13
Whole Foods Market .... 41

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

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Related Book For  book-img-for-question

Financial Reporting and Analysis

ISBN: 978-0078025679

6th edition

Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon

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