You are told that a growth company has a P/E ratio of 13 times and a growth

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You are told that a growth company has a P/E ratio of 13 times and a growth rate of 15 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?

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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