Discussion
It has been found by researchers that P/E and profitability ratios are not necessarily highly correlated—positively or negatively.
Think carefully about this issue and discuss why that is the case.
Specifically, think about the role of earning numbers, how they are generated, what their purpose is, how markets view them, other factors that impact the quality of these numbers, and other sources of information that are needed to interpret these numbers correctly.
Think carefully about this issue and discuss why that is the case, what their purpose is, how markets view them, and other factors that impact the quality of these numbers.
