Category P/E

Category P/E is simply the average P/E of all the funds in a given category.

For eg : There are 5 funds in the small cap category with the following P/Es:

Fund P/E
A 25
B 27.5
C 30
D 32.5
E 35

The category P/E in this case will be 30. 

The category P/E alone might not add value but individual fund P/Es can be compared to their respective category P/Es to find undervalued funds with upside available.