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To: Ahda who wrote (165432)	5/13/2002 3:08:50 PM
From: Ahda	Respond to of 436258

msnbc.com S&P to change profit calculation Move to stricter standards follows Enron accounting mess By Henny Sender THE WALL STREET JOURNAL NEW YORK, May 13 — Standard & Poor’s is expected Tuesday to announce new standards for calculating companies’ so-called operating-earnings results, a move that is expected to focus a spotlight on often opaque earnings reports When you realize the average price/earnings ratio for the last 50 years has been 16 times, you can see that the market is overvalued,” said David Blitzer, chief economist for S&P. “The new definition shows that the valuation today is extreme.” Besides treating stock options as an expense, S&P will include restructuring charges from continuing operations, even as pension-plan investment gains will be excluded. S&P’s new stock-option standard alone will ratchet down its estimated earnings this year for companies in the S&P 500 index by an average of 10%, S&P officials said.