Unless these conditions change, they will continue to provide strong support to the share price. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. We've established that Leslie's maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future. In light of this, it's understandable that Leslie's' P/E sits above the majority of other companies. Meanwhile, the rest of the market is forecast to only expand by 9.8% per annum, which is noticeably less attractive. Turning to the outlook, the next three years should generate growth of 21% per annum as estimated by the ten analysts watching the company. Therefore, it's fair to say the earnings growth recently has been superb for the company. Pleasingly, EPS has also lifted 17,641% in aggregate from three years ago, partly thanks to the last 12 months of growth. If we review the last year of earnings growth, the company posted a worthy increase of 12%. There's an inherent assumption that a company should outperform the market for P/E ratios like Leslie's' to be considered reasonable. What Are Growth Metrics Telling Us About The High P/E?
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