July 26, 2009 2:42 PM
dshort.com has a good piece showing the PE ratio based on as-reported earnings and actual prices. Here’s their chart. It doesn’t look cheap to us – what do you think? If the PE ratio falls by half, then reported earnings have to double for the stock market level to not fall further.
As TPC points out, using actual reported earnings is the only way to keep emotion out of the analysis.
More on this topic
(What's this?)
Excel Maritive earnings report
(The Shipping Stocks Blog, 8/5/09)
Earnings vs Revenue
(Expected Returns, 7/25/09)
Neither You or the Economy Can Survive Without Earnings
(Contrarian Profits, 7/1/09)
Understanding Earnings Surprises: What to Look For & Their Meaning For Investors
(Investment U, 7/27/09)








