DEFINITION of 'Decile'

A method of splitting up a set of ranked data into 10 equally large subsections. This type of data ranking is performed as part of many academic and statistical studies in the finance field. The data may be ranked from largest to smallest values, or vice versa.


When an analyst or statistician ranks data and then splits them into deciles, it is in an attempt to discover the largest and smallest values by a given metric. For example, by splitting the entire S&P 500 Index into deciles (50 firms will be in each decile) by the P/E multiple, the analyst will discover the companies with the highest and lowest P/E valuations in the index.

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