Price-Earnings Relative

A price-earnings ratio of a stock divided by the price-earnings ratio of a market measure, or index, such as the S&P 500 or Wilshire 5000.


This is a method for judging whether a price-earnings ratio is reasonable in relation to market conditions and historical P/Es.



Understanding the P/E Ratio - Learn what the price/earnings ratio really means and how you should use it to value companies.

Move Over P/E, Make Way For The PEG - Has the P/E ratio lost its luster? The PEG ratio has many advantages over its well-known counterpart.

Is the P/E Ratio a Good Market-Timing Indicator? - Check out the returns this newer technical analysis tool would've yielded over the period from 1920 to 2003.

Ratio Analysis Tutorial - If you don't know how to evaluate a company's present performance and its possible future performance, you need to learn how to analyze ratios.
Related Terms

Price-Earnings Ratio

S&P 500

Wilshire 5000 Index

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