-7-5 Why P/E ratios vary (LO 7-4) The price/earnings ratios...

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Finance

-7-5
Why P/E ratios vary
(LO 7-4)
The price/earnings ratios of four companies from the same industry are:
Company
P/E Ratio
\table[[Ingles Markets,7.9],[Kroger,6.6],[Sprouts Farmers Market,18.3],[Weis Markets,17.4]]
Source: Based on closing stock prices on March 17,2019, and trailing-twelve-months earnings per share, both from Yahoo Finance.
Required:
What factors might explain the difference in the P/E ratios of these companies?
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