20 Jan 2016

Stock Prices are Lower. Are They Cheap?

Yesterday, Mike Lissner came over to my desk and asked what the Price Earnings-ratio (PE-ratio) was for the S&P 500.  I leaned over to my handy-dandy Bloomberg terminal, and looked it up and told him that it was 16.8. He then asked what the average was and moving to a different screen, I showed him that the average PE-ratio for the S&P 500 since 1954 was 16.4 and the median… Read More