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.
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.
Roberts - PE ratios & future returns
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/