PE of 87.07 for Dow Jones Industrial in this week's Barrons

Discussion in 'Trading' started by MAVERICK007, May 19, 2008.

  1. MONDAY, MAY 19, 2008

    Indexes PEs and Yields DJ latest 52-week earnings and dividends adjusted by Dow Divisors at Friday's close.

    DJ Ind Avg 12986.80
    P/E Ratio 87.07
    Earns Yield % 1.15
    Earns $ 149.16
    Divs Yield % 2.45
    Divs $ 317.88
    Mkt to Book 3.91
    Book Value $ 3323.94
  2. Just for the heck of it, anyone know what the S&P is?
  3. Lucrum


    I don't generally follow those kinds of numbers. But that seems like an awfully high P/E for the Dow.
  4. PE for the Dow is so high because of losses at AIG and GM.

    BigCharts shows SPX with PE of 18.1 and DJIA with PE of 64.98.
  5. That number is 100% wrong!

    Look at the PE of the ETFs that track the DOW for an accurate number.
  6. If we solve for E (earnings) by dividing the Today's price (13028.16) by PE (15.58), we get a trailing earnings of $836.21. If the Dow Jones website can verify that the trailing earnings of the DJIA is $836.21, then the PE of 15.58 would be correct.

    However, Dow Jones also owns Barron's which is reporting a much higher PE of 87.07 based on trailing earnings of $149.16.

    Hopefully, someone on ET can find the standard source for this information so everyone is on the same page
  7. The Wall Street Journal (the expert source for the Dow) has the trailing PE for the Dow at 87.34 and the forward PE at 14.29. The high trailing PE is because of huge losses at GM and AIG.

    Also the trailing PE for the S&P is given as 23.80 and the forward PE at 15.51.
  8. Green buy signal.

    Very misleading article by Forbes. Terrible journalism.