cintrix, I'm aware of the P/E ratio of Nvidia (NVDA). To help you better understand the problem. I am trying to teach my classmates the comparison of the P/E ratio to sector, industry and market. Let me give you an example…
None of this information is correct, once again numbers can be made up, just an example.
The P/E ratio for NVDA is 17.4.
Though when we look at the industry, we notice that the average P/E ratio is 24.
This tells us that growth could be slower for NVDA to its peers in that industry.
Then we look at the sector and notice that the average P/E ratio is 17.
This tells us that growth could be higher for NVDA to its peers of its sector.
Finally, we look at market. The overall market P/E ratio is 22. This tells us NVDA could have slower growth than its peers of the industry and overall market.
I hope you understand now. Can I find this accurate information taking place of the P/E ratios of the industry, sector and market?
