price-earnings relative

price-earnings relative definition - business

price-earnings relative

The price-earnings ratio of a stock in relation to the price-earnings ratio of the overall stock market, generally as measured by the S&P 500. This ratio is used as a tool to help determine if a stock's P/E ratio is reasonable.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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