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To: Chuzzlewit who wrote (116734)	4/12/1999 4:12:00 PM
From: Michael Bakunin	Read Replies (2) \| Respond to of 176387

I ran the numbers, but I have access to third-party data sources. What it sounds like you need is not a market number, but a peer group number of prospective growth stocks, or of growth index like the S&P BARRA Growth. In that case, you have more of a point, since a much larger proprotion of a growth index will have negative trailing earnings, so P/E will be overstated by 15-20%, not just 10%. If this number is important to your discipline, I think you need to do a little more work, though: why trailing earnings instead of forecasts? Why not normalize earnings? Which index/peer group? Good luck, -mb ....PS - negative/breakeven earnings will not distort the index P/E if you calculate it properly, i.e. as if the whole index were one security representing complete ownership of each constituent company.