The relative P/E model assumes that a company will keep its historical relationship to the market's price-earnings ratio.

Name: The relative P/E model assumes that a company will keep its historical relationship to the market's price-earnings ratio.
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The relative P/E model assumes that a company's P/E ratio will remain consistent with the market's P/E ratio in the future, based on its historical relationship with the market's P/E ratio.

The Relative P/E Model Assumes That a Company Will Keep