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Politics : Formerly About Applied Materials
AMAT 220.28-6.4%3:59 PM EST

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To: Cary Salsberg who wrote (45846)4/25/2001 2:11:29 PM
From: Kirk ©  Read Replies (1) of 70976
 
On Valuation and Nasdaq100 P/E

I have a macro+program that keeps track of the 100 stocks in the Nasdaq100. I sum their market caps and sum total earnings and then calculate P/E for the top 40 and for the full 100. This ignores effects like the actual Nasdaq100 index gives some profitable companies like Intel and MSFT only 50% weightings in their index so I might be over stating significantly the P/E. I have posted a table of the results here:

suite101.com

This is only the earnings as reported by Yahoo! so it is actual earnings rather than operating earnings but this actually makes sense given some companies like CMGI and AMZN were (note were) in the business of losing money. They will EITHER change their business model or vanish from this list.

You can subscribe to this thread and get an email when I post updates there. Use this URL to subscribe: suite101.com

My method is not perfect and I keep finding little bugs (such as a few companies dropped below $1B in market cap and I had to do a logical text search/replace rather than assume all market caps returned by Yahoo ended in $B).. so with that disclaimer that there could be more bugs...

I actually think looking at the top 20 stocks in the index might be more worthwhile.... since many below that (by market cap) might be gone soon.

Kirk
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