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Non-Tech : QQQ - Nasdaq 100 Trust
QQQ 623.23+2.2%Nov 10 4:00 PM EST

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To: Topannuity who wrote (463)12/25/2000 12:23:15 PM
From: smchan  Read Replies (1) of 840
 
One problem with calculating the average P/E, I think, is all the stocks which have 0 P/E. My understand of P/E is that a lower P/E is good (assuming we have good growth, etc) as long as the P/E is positive. It seems all the 0 P/E's would pull the average down and the number would be misleading.

Rather than a weighted average of the P/E's, perhaps we should tally a weighted sum of the EPS from which we could derive a P/E for QQQ. It seems easy to do if the data is available: total = total + (EPS * no. shares in 1 share of QQQ) to get the EPS and then price QQQ/total EPS to get the P/E. Make sense?

Happy Holidays,
Sam

Edit: I just re-read some of the thread and realized I probably said the same thing Brian was putting forth in his post: siliconinvestor.com My apologies for the duplication!
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