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.
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PriceEarnings Ratio  P/E Ratio
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RELATED FAQS

Why is the PEG (price to earnings growth) ratio something I should be looking at ...
Understand the price/earnings to growth ratio and why it may be a better stock valuation tool than the more widely used priceearnings ... Read Answer >> 
What is considered a good PEG (price to earnings growth) ratio?
Learn about the price/earnings to growth (PEG) ratio and understand what investors and market analysts consider a good ratio ... Read Answer >> 
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