Education . P/E and Growth . 1 of 3 RupeeCase
Two stocks. Both at a P/E of 20.
One is twice as expensive.
20 = 20
same price to earnings . very different price
A friend showed me two stocks over coffee. Both trading at twenty times earnings. Same P/E, he said, so same price, pick either one. I asked him a single question back. How fast is each one growing. Because a P/E on its own is a price tag with the growth rate torn off. Staple the growth back on and these two are not close.
Source . Illustrative . 9 Jul 2026