Why is no one talking about the S&P500 P/E ratio?

[MrDODGE]

Quote from Pascal:

The PE is only 18.65.

This is just a hyperbolic post.

Yeah, the Standard and Poors site is wrong

http://www2.standardandpoors.com/po...ces_500/2,3,2,2,0,0,0,0,0,1,11,0,0,0,0,0.html

 

[Daal]

S&P is fairly valued in a forward operating V shaped recovery earnings scenario otherwise we are going down hard

 

[kiwi_trader]

For anyone who doubts that S&P are right ... a large number of their stocks have no or negative earnings. That compensates for the ones in the 14-25 pe bracket.

The V shaped recovery will be interesting to see.

 

[Random.Capital]

This is classic ET - everybody calling each other stupid and talking past one another - even though there are at least 5 different ways to calculate the S& P/E.

 

[MrDODGE]

Quote from Random.Capital:

This is classic ET - everybody calling each other stupid and talking past one another - even though there are at least 5 different ways to calculate the S& P/E.

Take the P/E from the OFFICIAL site and stop the bickering about all the ways to calculate the ratio.

http://www2.standardandpoors.com/po...ces_500/2,3,2,2,0,0,0,0,0,1,11,0,0,0,0,0.html

 

[oraclewizard77]

Finally, an intelligent response. What would be better to do is sample the companies in the index that actually have earnings, to calculate a PE.

To explain why companies have P but no E, take a look at any biotech stock. The price reflects the probability of success of FDA approval.

Also, if you are a trader, its better to trade on P not E. I don't know anyone who trades E successfully.

Quote from kiwi_trader:

For anyone who doubts that S&P are right ... a large number of their stocks have no or negative earnings. That compensates for the ones in the 14-25 pe bracket.

The V shaped recovery will be interesting to see.

 

[Random.Capital]

Quote from MrDODGE:

Take the P/E from the OFFICIAL site and stop the bickering about all the ways to calculate the ratio.

There are multiple official P/E numbers.

Thanks for illustrating the point...

 

[Pascal]

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[Mr Pain]

http://tinyurl.com/ngslvc

S&P 500 P/E Ratio Nearly Doubles

A P/E ratio rising from 10 to 18.35 is what happens when the S&P 500 rallies 50% (the P) while earnings (E) continue to decline. Below we provide a chart of the S&P 500 price to earnings ratio since the start of the 2002 bull market using trailing 12-month diluted earnings per share from continuing operations.