Decile

AAA

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.

INVESTOPEDIA EXPLAINS 'Decile'

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.

RELATED TERMS
  1. Analyst

    A financial professional who has expertise in evaluating investments ...
  2. Price-Earnings Relative

    A price-earnings ratio of a stock divided by the price-earnings ...
  3. Dogs Of The Dow

    An investing strategy that consists of buying the 10 DJIA stocks ...
  4. Standard & Poor's 500 Index - S&P ...

    An index of 500 stocks chosen for market size, liquidity and ...
  5. Price-Earnings Ratio - P/E Ratio

    A valuation ratio of a company's current share price compared ...
  6. Compound Annual Growth Rate - CAGR

    The year-over-year growth rate of an investment over a specified ...
Related Articles
  1. What Is The Impact Of Research On Stock ...
    Investing Basics

    What Is The Impact Of Research On Stock ...

  2. Data Mining For Investors
    Active Trading

    Data Mining For Investors

  3. The Importance Of Segment Data
    Active Trading

    The Importance Of Segment Data

  4. Where can I find historical stock/index ...
    Investing

    Where can I find historical stock/index ...

comments powered by Disqus
Hot Definitions
  1. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  2. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  3. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  4. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  5. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
  6. Direct Participation Program - DPP

    A business venture designed to let investors participate directly in the cash flow and tax benefits of the underlying investment. ...
Trading Center