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Price-Earnings Relative
Price-Earnings Relative
Image 1 A stocks price-earnings ratio divided by the price-earnings ratio for a market measure such as the S&P 500 index or Wilshire 5000.
Image 2 This is a method for judging whether a price-earnings ratio is reasonable based on market conditions and historical p/e's.


Price-Earnings Ratio

S&P 500

Wilshire 5000 Index