price / earning ratio Tullow Oil v's BP

[docker]

I'm trying to understand the massive differences in the p/e ratio's of companies in the same sector. For example Tullow Oil versus BP. Tullow 91 versus 9 for BP quoted in The Sunday Times.

Im not trying to discuss the merits of investing in either company, am just trying to get my head over this 10 fold difference for companies in the same industry. I understand earnings growth forecast has a big influence but is this the only reason??

Thanks,

 

[Brendan Burgess]

Docker

You know the Posting Guidelines. You can't simply opt out of them by declaring that this is not a discussion of their share price.

Brendan