P/E ratio only 18??

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privatefarmer
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P/E ratio only 18??

Post by privatefarmer » Tue Nov 14, 2017 1:44 pm

S/p 500 P/E ratio now at 18?? Wasn't it JUST in the lower to mid 20s? And market has only been going UP??? Why Is nobody talking about this?? "Nobody knows nothin"

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greg24
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Re: P/E ratio only 18??

Post by greg24 » Tue Nov 14, 2017 1:45 pm

This has it at 25.68: http://www.multpl.com/

Shiller PE at 31.43: http://www.multpl.com/shiller-pe/

Da5id
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Re: P/E ratio only 18??

Post by Da5id » Tue Nov 14, 2017 1:45 pm

privatefarmer wrote:
Tue Nov 14, 2017 1:44 pm
S/p 500 P/E ratio now at 18?? Wasn't it JUST in the lower to mid 20s? And market has only been going UP??? Why Is nobody talking about this?? "Nobody knows nothin"
Source? http://www.multpl.com/ says it is 25.68.

kosomoto
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Re: P/E ratio only 18??

Post by kosomoto » Tue Nov 14, 2017 1:48 pm

Vanguard lists it as 22.3. They exclude negative earnings but almost no companies in the 500 have negative earnings.
Last edited by kosomoto on Tue Nov 14, 2017 1:50 pm, edited 1 time in total.

KyleAAA
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Re: P/E ratio only 18??

Post by KyleAAA » Tue Nov 14, 2017 1:48 pm

Are you referring to Forward PE?

GLState
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Re: P/E ratio only 18??

Post by GLState » Tue Nov 14, 2017 1:54 pm

http://www.multpl.com/

According to S&P Dow Jones the trailing P/E Ratio is 23.30 as of June 30th, 2017. The Projected P/E Ratio is 18.34 as of Oct 31st..

WSJ ... http://www.wsj.com/mdc/public/page/2_3021-peyield.html
Last edited by GLState on Tue Nov 14, 2017 2:08 pm, edited 3 times in total.

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jhfenton
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Re: P/E ratio only 18??

Post by jhfenton » Tue Nov 14, 2017 1:57 pm

I hadn't seen 18.x for the S&P 500, even for a forward P/E. M* shows about a Price/Prospective Earnings of 20.6 for the S&P 500. I'm not sure what earnings estimates the S&P Dow Jones is basing their number on.

(M* has my other holdings at forward P/E's ranging from 21.3 (VIOV - Vanguard S&P 600 Value) to 11.6 (EMGF - iShares Edge Multifactor Emerging Markets), with the portfolio average at 16.0.)

Yankuba
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Re: P/E ratio only 18??

Post by Yankuba » Tue Nov 14, 2017 2:13 pm

I don't believe any of the numbers coming out of individual companies are accurate (accounting is gray and these companies are massive as well as complex) so I'm not surprised there's no consensus on something as important as a P/E ratio for an entire index. I know people who won't touch stocks, mutual funds or ETFs because they think it's all fake or a fraud and while I do believe there are real companies out there with products and customers I do think the numbers they release are largely fiction. But I would rather own a basket of U.S. stocks and bonds than real estate, a personal business, commodities, currencies, Bitcoin, etc.

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JoMoney
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Re: P/E ratio only 18??

Post by JoMoney » Tue Nov 14, 2017 4:02 pm

Forward earnings.
Analyst estimates for 2018 "Operating Earnings" is $144.41
At a current price of $2,578 that's a forward P/E that rounds up to 18.

http://us.spindices.com/documents/addit ... s-est.xlsx
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham

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