Compare the tech companies’ P/E ratios to 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 companies’ stocks justified given the earnings? Why?
Compare the tech companies’ P/E ratios to 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 companies’ stocks justified given the earnings? Why?
Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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Compare the tech companies’ P/E ratios to 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 companies’ stocks justified given the earnings? Why?
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