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Non-Tech : NOTES

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To: Didi who started this subject11/25/2000 2:59:26 PM
From: Didi   of 2505
 
"Stock Market Valuation--S&P 500 Index" by Yardeni.com...

Result from "Yardeni.com - Valuation Calculator", 11/25/00:

>>>Over the next 12 months, the consensus earnings forecast of industry analysts for the S&P 500 is $62.05 per share, according to the latest weekly data compiled by I/B/E/S International. This is a 12.5% increase over the latest available four-quarter trailing sum of earnings.

The fair-value of the S&P 500 Index was 1098.23 yesterday, derived simply as the 12-month forward earnings divided by the 10-year Treasury bond yield, which was 5.65% yesterday.

The S&P 500 closed at 1322.36 yesterday, suggesting that the market was 20.4% overpriced, i.e., above the fair value.<<<
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