DEFINITION of 'PriceEarnings Relative'
A priceearnings ratio of a stock divided by the priceearnings ratio of a market measure, or index, such as the S&P 500 or Wilshire 5000.
INVESTOPEDIA EXPLAINS 'PriceEarnings Relative'
This is a method for judging whether a priceearnings ratio is reasonable in relation to market conditions and historical P/Es.
RELATED TERMS

Relative Value
A method of determining an asset's value that takes into account ... 
PriceEarnings Ratio  P/E Ratio
A valuation ratio of a company's current share price compared ... 
Standard & Poor's 500 Index  S&P ...
An index of 500 stocks chosen for market size, liquidity and ... 
Wilshire 5000 Total Market Index ...
A market capitalizationweighted index composed of more than ... 
P/E 10 Ratio
A valuation measure, generally applied to broad equity indices, ... 
Abnormal Earnings Valuation Model
A method for determining a company's worth that is based on book ...
RELATED FAQS

How do companies benefit from price discrimination?
Insurance companies could be an attractive addition to an investment portfolio offering a good balance of capital appreciation ... Read Full Answer >> 
What is the difference between Macaulay duration and modified duration?
The forward price to earnings (P/E) is the measure of a company's P/E ratio using its expected earnings. You could calculate ... Read Full Answer >> 
What does it mean if a bond has a zero coupon rate?
The electronics sector offers an attractive investment option for investors seeking growth opportunities. The sector is very ... Read Full Answer >> 
How do I use ratios to perform a financial analysis?
Ratios are important tools used in fundamental analysis and valuation. Some measure operating performance based on data from ... Read Full Answer >> 
What metrics are most commonly used to evaluate companies in the insurance sector?
Insurance sector companies, as any other nonfinancial service, are evaluated based on their profitability, expected growth, ... Read Full Answer >> 
How can I calculate the forward p/e of the S&P 500?
Forward pricetoearnings, or P/E, for the S&P 500 is calculated by dividing the market share per price by the forecasted ... Read Full Answer >>
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