— -- Q: How do I find what a stock's price-to-earnings ratio (P-E) was in the past? A: The price-to-earnings ratio, or P-E, is a popular way to gauge how expensive a stock is. The ratio tells ...

Basically, the lower the PE, the higher your future returns tend to be. At a PE of around 17x, the S&P 500's valuation is arguably on the high side. But the history since 1988 shows that 12-month ...

The chart below shows the long-term historical P/E ratio for the S&P 500. At a current level of 17.31, the trailing P/E ratio is nearly two points above its historical average (15.35: red line).

In the case of the Nasdaq 100 chart up above, the usual price seems to average out a bit below 24x earnings, 23.6 to be precise, over the last 20 years. 23.6 is of course a lot lower than the ...

The chart below shows a standardized (historical z-score) view of the PE10 and the forward PE. Let's focus on 2009: shortly after the market bottom the forward PE ratio shot up to "expensive" levels.

So the argument that the P/E ratio has lost its effectiveness can be no more than speculative at this point. This is especially so given that in most of U.S. history the ratio was quite effective.

Yeah, absolutely. So, it, like you said, we're looking at the price relative to its earnings. You may look at Berkshire Hathaway, class A, and say that's a very expensive stock, and then compare ...

The Famous Shiller PE Ratio Is Predicting Positive Returns For The Stock Market By Sam Ro 2013-06-05T16:19:00Z ...