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Strategies & Market Trends : The New Economy and its Winners

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To: Killswitch who wrote (14511)10/24/2002 3:21:05 PM
From: Oeconomicus  Read Replies (1) of 57684
 
Brian, a guy from S&P (might have been David Blitzer, who was quoted for the article) was on CNBC a little while ago talking about this new number. He was focused entirely on transparency of reporting by companies so that investors can judge better what the numbers really mean for that company, not on the valuation implications. In fact, he said that if you want to judge valuation of businesses (or the index) with the aid of an historical perspective on PEs, you need to look at operating or as reported figures because those are the measures where historical data is available. The article alludes to this issue as well, but he said more on the tube.

Bob
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