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
S&P is fairly valued in a forward operating V shaped recovery earnings scenario otherwise we are going down hard
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.
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
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.
....................../´¯/) ....................,/¯../ .................../..../ ............./´¯/'...'/´¯¯`·¸ ........../'/.../..../......./¨¯\ ........('(...´...´.... ¯~/'...') .........\.................'...../ ..........''...\.......... _.·´ ............\..............( ..............\.............\...
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.