Which of the following statements is true about market value ratios? High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings. Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings.

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Business

5 September, 12:33

Which of the following statements is true about market value ratios? High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings. Low P/E ratios could mean that the company has a great deal of uncertainty in its future earnings.

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Salma Zimmerman · Answer 1

High P/E ratios could mean that the company has a great deal of uncertainty in its future earnings statements is true about market value ratios

Explanation:

Market value ratios ease estimate the economic situation of openly purchased organizations and can perform a part in identifying capitals that may be magnified, depreciated, or rated moderately. P/E ratio is estimated as the value of the share in the contemporary time toward the profits the company has proclaimed for the financial term on a per-share basis.

A firm with a great P/E ratio is usually examined to be germination properties. firms with high P/E ratios are more prone to be viewed as perilous purchases than those with cheaper ones.