S&P 500 Data is wrong

    Roberts - PE ratios & future returns

    Posted by jdaswani on 11th of Jul 2016 at 12:44 pm

    Above article is misleading. 

    2016 Ests $118.39

    2017 Ests $135.42

    Avg 126.58

    That implies PE 16.9x 2yr avg multiple. Big difference from the 24x multiple quoted. My data is coming from Yardeni Research. 

    Roberts - PE ratios & future returns

    Posted by sbaxman111 on 11th of Jul 2016 at 01:27 pm

    Roberts has written numerous times, that I have seen, that forward estimated earnings have been so unreliable on a historical basis that trailing earnings, in his opinion, should be the basis for these PE calculations. 

    Ok Valid comment. 1 problem. S&P

    Posted by jdaswani on 11th of Jul 2016 at 02:02 pm

    Ok Valid comment.

    1 problem. S&P 500 2015 EPS was $117.98, so trailing eps is 2140/117.98 or 18.2x not 24x

    Roberts - PE ratios & future returns

    Posted by sbaxman111 on 11th of Jul 2016 at 02:36 pm

    Based on this Standard & Poors article, actual 2015 GAAP earnings were $86.47 leaving a PE ratio of 23.4. 2014 was $102.31 for a PE of 20.1. You should not that Roberts referenced his Q1 earnings stat came from S&P Data.

    http://www.investorsfriend.com/s-and-p-500-index-valuation/

    The chart is using reported

    Posted by a_l_ on 11th of Jul 2016 at 01:04 pm

    The chart is using reported earnings. You're citing earnings estimates and then making an assumption on a two year average of those estimates. That in no way makes the chart misleading.

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