Say a particular stock has a PE ratio of 30. Given that a standard valuation is closer to 10 or 15 times earnings, a PE ratio of 30 implies that investors foresee a lot of growth.
How can I understand this growth, specifically for a company that doesn't appear to have any kind of technology-spin. (The company I am looking at it is a consumer staples non-cyclical company.)
A good example might be Costco (NASDAQ:COST) which trades at 26.17x earnings.