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3 ways of measuring if stocks are overvalued

The price/earnings ratio is important, and it's now showing stocks are richly valued -- but don't overlook other metrics
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These 2 Brilliant Charts Show How Stock Market Returns Become More Predictable Over Time

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One of the most common ways to measure stock market value is to take the price and divide it by earnings. This is the price-earnings, or P/E, ratio. Trading at a P/E of around 16 times expected earnings, the S&P 500 appears to be ex...

Everything we know about PE ratios crammed into a useful, yet somewhat confusing chart

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The forward price/earnings (PE) ratio — the price of the S&P 500 divided by the expected earnings of those S&P 500 companies — is probably the most popular way to measure value in the stock market. But what does it really tell us? O...

S&P 500 Remains Overvalued For Almost Every Metric

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The S&P 500 earnings table shows that the S&P index remains overvalued in just about every metric being tracked. Whether using Professor Robert Shiller's popular (and not updated) cyclically adjusted price to earnings ratio for 10 y...

Stocks Are Severely Overvalued By Almost Every Predictive Metric

Business & Finance : Zero Hedge

The stock market is overvalued by almost every known metric. The single best predictor of stock market performance is the cyclically adjusted price-to-earnings ratio or CAPE ratio. Most investors price a company based on its current...

These 2 dot plots beautifully capture the problem with the most popular way of measuring stock market value

Business & Finance : Business Insider: Money Game

The forward price/earnings (PE) ratio — the price of the S&P 500 divided by the expected earnings of those S&P 500 companies — is probably the most popular way to measure value in the stock market. In theory, it tells us if the mark...

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