Market PE Ratio

S&P 500 P/E Ratio

This information comes from Laszlo Birinyi's blog "Ticker Sense" Birinyi is a top notch economist who I have followed for many years. As he shows the P/E ratio (trailing 12 month) of the S&P 500 is currently at 16.64. We have to go all the way back to October 1995 to see a ratio this low (16.02 on 10/26/95). As he has stated before, the PE ratio on the S&P 500 has contracted more than in any other economic recovery.

Source: "Ticker Sense", Birinyi, Laszlo. June 13, 2006.

You can link to Birinyi here: http://tickersense.typepad.com/ticker_sense/