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Strategies & Market Trends : Buffettology -- Ignore unavailable to you. Want to Upgrade?


To: Robert Douglas who wrote (561)11/9/1998 1:55:00 PM
From: Richard Nehrboss  Read Replies (2) | Respond to of 4690
 
Robert and all PE watchers,

RE: $42 for 99

That's the key.... Many estimates, from analysts, for S&P's 99 earnings are in the low 50's. From strategists, they are in the high 40's. In the low 50's we have a PE of around 20. A fair value given historical levels and the bond yield. In the high 40's, we have a PE of around 23, about 10-15% overvalued. In the low $40's... hang on.

Richard