View Single Post
  #7  
Old 08-11-2005, 07:29 PM
Sniper Sniper is offline
Senior Member
 
Join Date: Jun 2005
Posts: 704
Default Re: [P/E] vs growth of a stock

[ QUOTE ]
I'm just not getting WHY high growth stocks generally have a high PE.

[/ QUOTE ]

At its simplest, when you buy a company, you are paying for the value of its future earnings.
Reply With Quote