Relative PE(redirected from Relative P/E Ratio)
A firm or industry's price to earnings ratio divided by the market price to earnings ratio.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved