by Mike ‘Mish’ Shedlock
How many P/E ratios are there? Let me count the ways.
- As companies report for tax purposes (the real P/E).
- As as trumped up by mainstream media (the pro-forma P/E also called operating earnings).
- 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.