I came across a very cool study from Bespoke Investments where they ran an analysis of current PE ratios for the SP500 and all of it's sectors and compared them to their performance since 1990. You need a subscription of access the link.
I can't give up too much as it's proprietary for paid subscribers but let's just say that when compared to the average PE ratio of the last 23 years current prices are not inflated when compared to current earnings. PE ratios may be at 12 month highs but they are not anywhere near all time highs. As a matter of fact most of them are still below their average for the last 23 years.
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