S&P 500 P/E Ratios at 20-Month High

Includes: IYY, SPY
by: Eddy Elfenbein

Eddy Elfenbein submits: Thanks to Wednesday's surge, the P/E ratio of the S&P 500 is up to 16.87 (I use smoothed operating earnings). That's the highest it's been since August 2005.

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S&P 500\'s PE Ratio

It's hardly excessive, but we're starting to see the impact of slower earnings growth. At the start of the year, first-quarter earnings were projected to be up 8.7%. They'll probably be up 4% to 5%. Fortunately, most of the damage is confined to the autos and homebuilders.

So far.