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.
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BREAKING DOWN '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

PriceEarnings Ratio  P/E Ratio
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Dow Jones Wilshire MidCap Index
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