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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 156.96-1.7%11:02 AM EST

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To: Kirk © who wrote (9771)4/21/2001 4:08:22 AM
From: Math Junkie  Read Replies (1) of 10921
 
The problem is that, as John pointed out, the weightings in the index are not strictly by market cap. Perhaps this is why his calculation on the entire index gives a negative P/E and yours gives a positive one.

It looks to me like the fact that MSFT has a share weighting of 9.42% means that if you owned 100 shares of QQQ, that would include 9.42 shares of MSFT. So, to calculate the EPS of QQQ, you would take the EPS of each stock, multiply it by the percentage in the weighting list I posted, and add up the totals. You would then divide the current QQQ price by that total to get P/E.
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