Equities: Relative Valuation Fullscreen Go Back III KNOWLEDGE CHECK What may be a problem of comparing the P/E of a stock to the P/E of the overall market? Given the number of stocks in the overall market, it is very time consuming to calculate the P/E of the market. A stock's P/E ratio can remain above or below market average for extended periods. Most stock market indices exclude the effect of dividends. sufficiently broad for the The overall may not purpose of comparison.