Are Stocks Cheap? Diving Further Into the Russell 2000, S&P 500, and Nasdaq P/E Ratios

by Mike ‘Mish’ Shedlock
Mish Talk

How many P/E ratios are there? Let me count the ways.

  1. As companies report for tax purposes (the real P/E).
  2. As as trumped up by mainstream media (the pro-forma P/E also called operating earnings).
  3. As further trumped up by mainstream media (forward estimates, typically wildly off) based on pro-forma PE ratios.

I am quite sure I have missed other creative measures spewed out by market analysts promoting the message “stocks are cheap”.

However, let’s dive into an analysis of the above.

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