Exchange Currency

relative P/E ratio

The ratio of the profits over earnings of a business to the ratio of the profits over earnings in the market. The percentage of profits is divided by the percentage of earning. A relative P/E can be measured the following ways: terms of current earnings, trailing, and forward earnings. However, only one of these must be used over the long term for comparing the firm and the market for consistent accuracy.

Related information about relative P/E ratio:
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