The price-earnings relative is determined by dividing a company’s price-earnings ratio by that of the market. You would expect a company with prospects better than the market, or with lower risk ...

Relative Price Strength Strategy. Earnings growth and valuation multiples are indeed important for investors to determine a stock’s ability to offer considerable returns.

By comparison, Dollar Tree has a zero-growth value of $71.62 and the current share price is $146.80 which implies that the market is valuing Dollar Tree's growth opportunities at $75.18.