Table of Contents
What is the average PE ratio for NYSE?
The current S&P500 10-year P/E Ratio is 38.0. This is 90\% above the modern-era market average of 19.6, putting the current P/E 2.3 standard deviations above the modern-era average.
What is the historical average PE ratio?
The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings. The high multiple indicates that investors expect higher growth from the company compared to the overall market.
What is the historical average forward PE ratio of the S&P 500?
Historical Distribution of the P/E Ratio During the period January 1971 to June 2017, the S&P 500 P/E ratio averaged 19.4x, while the median P/E ratio was 17.7x. For the majority of this period, the P/E ratio was less than the 19.4x average, as shown below.
What is the average return of the stock market over the last 50 years?
The S&P 500 gained value in 40 of the past 50 years, generating an average annualized return of 10.9\% despite the fact that only a handful of years actually came within a few percentage points of the actual average.
What is the Dow Jones PE ratio?
Dow JonesTHURSDAY, DECEMBER 09, 2021
| P/E RATIO | ||
|---|---|---|
| 12/09/21† | Year ago† | |
| Dow Jones Industrial Average Dow Jones Industrial Average | 22.25 | 29.53 |
| Dow Jones Transportation Average Dow Jones Transportation Average | 29.25 | n.a. |
| Dow Jones Utility Average Index Dow Jones Utility Average Index | 30.10 | 23.21 |
What is the current Dow PE ratio?
Therefore, Dow’s PE Ratio for today is 7.15.
What is the average PE ratio of the stock market?
The stock market as a whole (measured by the S&P 500) has had an average PE ratio (throughout it’s history) of 15.54.
How do I use P/E ratios to evaluate a company?
A stock market index, such as the S&P 500, can be used to gauge whether the company is over- or undervalued relative to the market. A P/E ratio can also be benchmarked relative to the industry average P/E, such as comparing McDonald’s to the average P/E ratios of other fast food restaurants. You can get industry P/E ratio data at WallStreetZen.com.
Is a high PE ratio bad for investors?
The higher the P/E ratio, the more you are paying for each dollar of earnings. This makes a high PE ratio bad for investors, strictly from a price to earnings perspective. A higher P/E ratio means you are paying more to purchase a share of the company’s earnings. So, what is a good PE ratio for a stock?
What is the highest and the lowest PE ratio ever recorded?
It’s lowest ever recorded PE ratio was 5.31 (in 1917) and it’s highest ever PE was 123.73 (in May 2009). However, Robert Shiller, the nobel laureate economist from Yale University likes to use the cyclically adjusted PE ratio instead (known as CAPE) and this gives a historical PE ratio of 16.6 .
https://www.youtube.com/watch?v=4KkTGx2bK_4