Relative P/E Ratio

Companies traded as ADRs are excluded
Companies traded on the OTC market are excluded
For the current year (Y0), at least three analysts should have given a forecast for revenue
Current earnings estimates for the current year (Y0) are greater than those from one month ago
There are more upward revisions than downward revisions to current year (Y0) earnings estimates
At least one upward revision to the current year’s (Y0) earnings estimates
Earnings estimates for the next year (Y1) are greater than the forecasts made a month ago.
There are more upward revisions than downward revisions to next year’s (Y1) earnings estimates
At least one upward revision to next year’s (Y1) revenue forecasts
Relative P/E valuation as a percentage of current share price is less than or equal to 100%.
Average P/E ratio for each of the last 5 years should be less than or equal to 10

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