tcal

Crazy P/E Ratios

google ie_data.xls

Crazy P/E Ratios

for Shiller's data, google search: "ie_data.xls"

Crazy P/E Ratios

I suggest studying the S&P 500 price and earnings data at Robert Shiller's web-site, see irrationalexuberance.c... The data covers 1871 - 2008, and shows that as of 10/7/2008, the S&P 500 PE is ~16, near the historical average PE of ~16.

So despite the sharp decline in the S&P 500, we are only now near the historical average PE. Any thoughts? Is Shiller's data wrong/misleading?

*Note: Shiller used the average of ten-year trailing earnings when he calculates PE. Currently, average tr. 10 year earnings are ~61 and tr. one year earnings are approiximately 63.)

for the data, Google: ie_data.xls

www.econ.yale.edu/~shiller/data/ie_data...