OTC overvalued? Here are some numbers from a Street.com columnist: "Valuing the Nasdaq Composite Index is tough, due to the huge number of stocks and lack of earnings data. Obtaining a price-to-earnings ratio for the Nasdaq 100 index is much simpler. Detox calculates that the Nasdaq 100 is trading at 73 times 2001 earnings forecast by Thomson Financial/First Call, and 42 times expected 2002 earnings. That's frightfully expensive. (Note that the Nasdaq 100 is a weighted index. This means some companies' index weights are higher than their market capitalization, and vice versa. If you adjust forecast earnings to bring them into line with index weights, as one should, the 2001 P/E goes up to 103, while 2002's jumps to 52.) Many have talked about valuations coming down as earnings rebound in 2002. But the 2002 estimates used here already are predicting a rip-roaring recovery. Weighted aggregate Nasdaq 100 earnings are expected to be $25 billion for 2002, nearly double the $13 billion forecast for 2001. (Unweighted earnings are targeted at $18 billion for 2001 and $31 billion for 2002.) Next, let's be insanely generous and assume that the Nasdaq 100 trade deserves to trade at 40 times those weighted 2002 earnings. That would give the Nasdaq 100 a market cap of $1 trillion, and an index value of 915, 23% below Tuesday's close. Apply the same drop to the Nasdaq Composite index and you get 1155. " here's link to the complete article: http://www.thestreet.com/markets/detox/10001625.html Comments appreciated.