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Invesco tells me the P/E for SPGP is 15.21, and the ROE is 42.08 for a PEP ratio of .361. Given SPGP's thesis, the final number isn't too surprising.There’s an investment case for both groups — buying cheap stocks has been a winning strategy historically, and so has buying shares of highly profitable companies. Still, differences in valuation and profitability make stock funds difficult to compare. One way to solve that is with a variation of Lynch’s PEG ratio that substitutes profitability for growth. This PEP ratio, let’s call it, compares funds’ P/E ratio with their profitability, and like the PEG ratio, the lower the PEP ratio, the better.