P/E mean reversion
We tested sector-relative P/E mean reversion on 13 global stock markets from 2000 to 2025. The signal: buy when a stock's P/E drops below 60% of its sector median, filtered for quality (ROE > 8%, D/E < 2). The result splits cleanly along geography. Western
P/E mean reversion
We tested a sector-relative P/E mean reversion screen on 25 years of US stock data from NYSE, NASDAQ, and AMEX. The signal triggers when a quality stock's P/E ratio falls below 60% of its sector's current median, meaning it's trading at least
P/E mean reversion
We tested a sector-relative P/E mean reversion screen on 25 years of UK stock data from the London Stock Exchange. The signal buys stocks trading at a deep discount to sector peers: stock P/E below 60% of its sector median, filtered for quality. The strategy returned 11.81%
P/E mean reversion
We tested a sector-relative P/E mean reversion screen on 25 years of Indian stock data from BSE and NSE. The signal fires when a stock trades at a 40%+ discount to its sector peers on P/E, filtered for profitability and manageable debt. The strategy returned 11.14% annually
P/E mean reversion
We tested a sector-relative P/E mean reversion screen on 25 years of German stock data from XETRA. The signal triggers when a stock's P/E ratio falls 40% below its sector median, filtered for quality. The strategy returned 10.39% annually vs 7.64% for the S&