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. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center