P/E effect
P/E effect
That portfolios with low P/E stocks exhibit higher average risk-adjusted returns than those with high P/E stocks. Related: Value manager.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
P/E Effect
A situation in which a portfolio with a lower average P/E ratio has a higher return (when adjusted for risk) than a portfolio with a higher ratio.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved