The S&P 500 p-e ratio is 27x while Amazon's p-e ratio is 67x. Briefly, name the 2 most import reasons Amazon's p-e ratio is so high.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 4P: Reno Revolvere has an EPS of $1.50, a cash flow per share of $3.00, and a price/cash flow ratio of...
icon
Related questions
Question
3. The S&P 500 p-e ratio is 27x while Amazon's p-e ratio is 67x. Briefly, name the 2 most important
reasons Amazon's p-e ratio is so high.
Transcribed Image Text:3. The S&P 500 p-e ratio is 27x while Amazon's p-e ratio is 67x. Briefly, name the 2 most important reasons Amazon's p-e ratio is so high.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning