Relative PE

(redirected from Relative Price-to-Earnings Ratio)

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 ?
In terms of relative price-to-earnings ratios, the FTSE 100 compared to the rest of the market is at the lowest it has been for many years and likewise, the relative dividend yield is the highest it has been for many years.
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