Category P/E
Category P/E is simply the average P/E of all the funds in a given category.
For eg : There are 5 funds in the small cap category with the following P/Es:
Fund | P/E |
A | 25 |
B | 27.5 |
C | 30 |
D | 32.5 |
E | 35 |
The category P/E in this case will be 30.
The category P/E alone might not add value but individual fund P/Es can be compared to their respective category P/Es to find undervalued funds with upside available.
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