Assessing the Market's Current Valuation [View article]
I don't know from what sources the author is obtaining his data.
Trailing as reported earnings for the SP500 are now estimated to be $28.60 which, with the SP500 trading at 800, makes the P/E ratio 28 compared to a recent historical average of 18.
David Rosenberg of Merrill Lynch forecast for as reported earnings for 2009 is now down to $28. That puts the P/E for the S&P 500 looking forward at 28.
He also projects "operating" earnings to be $55 for 2010. And, quoting him:
"For those looking for a silver lining, at least we are going to have a deeper bottom to bounce off. Applying a classic recession-trough multiple of 12x against a forward EPS estimate of $55 would imply an ultimate low of 666 on the S&P 500, likely by October if our estimate of the timing for the end of the official downturn."
Assessing the Market's Current Valuation [View article]
Trailing as reported earnings for the SP500 are now estimated to be $28.60 which, with the SP500 trading at 800, makes the P/E ratio 28 compared to a recent historical average of 18.
David Rosenberg of Merrill Lynch forecast for as reported earnings for 2009 is now down to $28. That puts the P/E for the S&P 500 looking forward at 28.
He also projects "operating" earnings to be $55 for 2010. And, quoting him:
"For those looking for a silver lining, at least we are going to have a deeper bottom to bounce off. Applying a classic recession-trough multiple of 12x against a forward EPS estimate of $55 would imply an ultimate low of 666 on the S&P 500, likely by October if our estimate of the timing for the end of the official downturn."