Respuesta :
Low P/E stocks are generally associated with mature companies, so a) is the correct alternative.
What Is a Price-to-Earning (P/E) Ratio?
The P/E ratio is determined by dividing a stock's current share price by its EPS, typically for the previous 12 months (also known as the trailing 12 months) (TTM). The majority of P/E ratios for publicly traded firms represent the stock's current price in relation to its earnings over the preceding 12 months.
Are Low P/E Ratio Stocks Always Better?
High price-to-earnings (P/E) ratio stocks may be excessively priced. The stocks with lower P/E ratios does not make better investments than those with higher ones. The complicated response is that it depends on the circumstance.
P/E ratios tend to differ from industry to industry, therefore it's critical to contrast businesses in the same sector and with comparable attributes.
Learn more about Price-to-Earning (P/E) Ratio here:
https://brainly.com/question/14624614
#SPJ4
