The relationship between price earning ratio and stock return; plantation sector / Mohd Jamil Ab Rani

This research paper studied the relationship and performance of Malaysian stock return with their different level of Price earning ratio in term of different portfolio construction. The yearly data collected from 2003 to 2006 by using 43 companies under plantation sector are selected based on P/E information. The objective of this study are to know the relationship, compare and rank the performance of these three portfolio conduct and also to see whether they outperform or underperformed as compare to it different level of P/E ratio. Three portfolios are conducted into the Lowest P/E ratio, Average P/E ratio and Highest P/E ratio. The performances of these portfolios are measured using Coeffect-t of Variation. The result showed that there is no relationship between Lowest, Average and Highest PE and stock return.