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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (735)	9/2/1998 5:28:00 PM
From: Axel Gunderson	Read Replies (1) \| Respond to of 1722

To the extent that p/e's are an implicit earnings forecast, the p/e on the Nifty 50 at their peak in December 1972 was 41.9 Thanks. What skews that, however, is that the drug and consumer companies had similar P/E ratios to today, and like today, I would hazard that their projected earnings growth rates at the time were not sky high. What interests me more is the tech stocks. It is easy to argue that KO is overvalued, since even the expectations for its business do not support the stock price. But with a CSCO for example, the expectations would seem to support the price. Not saying that the expectations are reasonable, mind you. Axel