Historical S&P PE Ratio from 1880 to today

[1a2b3cppp]

http://www.multpl.com/

Discuss.

 

[Wolfgang1756]

That is the "Shiller" P/E ratio!

 

[Humpy]

18.9 P/E ratio on the S&P500 is still a bit on the high side. A P/E of 15 is generally considered normal.

 

[Wolfgang1756]

Quote from Humpy:

18.9 P/E ratio on the S&P500 is still a bit on the high side. A P/E of 15 is generally considered normal.

That is a VERY good point. 15 is indeed a fair value, and so the current market is overvalued by 26%.

This would imply a current FAIR VALUE price of the S&P 500 of 872 making a P/E of 15...

 

[newwurldmn]

The low of 2000's was 15?

When the SPX was at 666, the shiller earnings were 50? doesn't sound right.

 

[Petsamo]

Quote from 1a2b3cppp:
http://www.multpl.com/
Discuss.

Are you an artificial intelligence, where you don't have an opinion? Maybe your opinion will form along with the consensus?

 

[Specterx]

Quote from newwurldmn:

The low of 2000's was 15?

When the SPX was at 666, the shiller earnings were 50? doesn't sound right.

?? The graph clearly shows the shiller PE topping out near 45 at the 2000 peak, then eventually touching 15 at the march 09 low.

Durable, long term market bottoms are formed at more like 7-10 rather than 15...

 

[Humpy]

Quote from Wolfgang1756:

That is a VERY good point. 15 is indeed a fair value, and so the current market is overvalued by 26%.

This would imply a current FAIR VALUE price of the S&P 500 of 872 making a P/E of 15...

errrrrrrm seems very low ?

 

[Wolfgang1756]

Quote from Specterx:


Durable, long term market bottoms are formed at more like 7-10 rather than 15...

Another excellent observation!

So a P/E of 7-10 implies an S&P 500 price range of 408-582, so there is a LONG way to go before the market bottoms.

 

[Algo_Design_Kid]

Sp500 @ 408 with 0% interest rates?

I really doubt it brother.