Relative PE

(redirected from Relative Price-Earnings Ratios)

Relative PE

A firm or industry's price to earnings ratio divided by the market price to earnings ratio.

Relative PE

The price-earnings ratio of a company compared to other companies in the same industry or other companies of the same size. The relative PE is useful in helping people make investment decisions. One may desire a higher relative PE or a lower PE, depending on one's investment strategy.
References in periodicals archive ?
Our empirical analysis identifies a significant role for investor sentiment, as reflected in relative price-earnings ratios, in explaining the cross-market price differentials for all four banks over a sample period that extends through the global financial crisis into 2011.
Our analysis follows Arquette, Brown, and Burdekin's (2008) approach in employing the relative price-earnings ratios in Shanghai and Hong Kong as proxies for market sentiment as well as allowing for company-specific sentiment effects and exchange rate expectations.
As in Arquette, Brown, and Burdekin (2008), the relative price-earnings ratios (P/Es) in Shanghai and Hong Kong are included as a proxy for the relative levels of aggregate investor sentiment across the two markets.
Investor sentiment, as reflected in relative price-earnings ratios, consistently affects the discounts of BOCOM, BOC, CCB, and ICBC.
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