10 Jun 2024

Stocks Look Cheap!

Since the beginning of 2023, the S&P 500 index has grown a staggering 40% through the end of May. While some of this performance has been driven by earnings growth, a lot of it has been good old-fashioned speculation as prices have outrun earnings. This is evident when looking at prices through the lens of company fundamentals. Consider the price-to-earnings (P/E) ratio. This ratio shows the value investors pay for… Read More

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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

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