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cedit crunch over: the keynsians were right, page-62

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    An interesting PE ratio of 134.

    I had a bit of a look at the S&P website and found that figure.

    I also found that at 31 June 2009 the "operating earnings" PE ratio is 24.29. I assume from looking at the table that most of the expansion in the PE ratio is due to massive losses by the financial sector (and GM?). I think operating earnings is what is supposed to be normal earnings that is sustainable. Of course that PE ratio is also based on much lower share prices than what prevailed in 2007.

    I suspect that the 2009-10 PE ratios will be less than 134 but a lot higher than the normal earnings PE ratio due to continued losses by many firms.

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