释义 |
Low price-earnings ratio effect Low price-earnings ratio effectThe tendency of portfolios of stocks with a low price-earnings ratio to outperform portfolios of stocks with high price-earnings ratios.Low Price-Earnings Ratio EffectA phenomenon whereby stocks with low price-earnings ratios tend to perform better than stocks with high price-earnings ratios. The low price-earnings ratio effect occurs because stocks with low price-earnings ratios are often undervalued, and their prices eventually rise. |