Name your source also. Thanks.
2007-03-07 15:01:12 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
I want to know the //e ratio of the entire index. The answer should be a number.
2007-03-07 15:30:29 · update #1
p/e*
2007-03-07 15:31:17 · update #2
The DJIA had earnings in 2006 of approximately 791.03 (the sum of all earnings of the companies that comprise the DJIA. That makes the PE ratio, based on today's closing price of 12,260 approximately 15.5. Macro Analysts at some of the larger investment banks are expecting 2007 earnings of 858.16 and 2008 earnings of 939.48. That makes the 1year forward and 2year forward PE ratios 14.3 and 13.0, respectively. Hope this helps
2007-03-08 12:12:53 · answer #1 · answered by Chris D 2 · 2⤊ 0⤋
You could figure this out on your own if you were really inclined to do so. I'm not at all sure its meaningful, from an investment standpoint, to get a P/E ratio of an index since the index itself isn't making money, only the companies which make up the index. Besides, P/E fluctuates constantly with the price of shares, since the share price fluctuates constantly. With an index, if you were to make such a calculation, it would probably fluctuate so wildly that it wouldn't be either meaningful or practical to utilize such an indicator.
2007-03-07 23:36:13 · answer #2 · answered by G A 5 · 0⤊ 2⤋
In very simple terms, the P/E ratio is the dollar amount a person would pay for every dollar a company earns. The formula is Market Price per share divided by the earnings per share.
2007-03-07 23:19:25 · answer #3 · answered by LadyShay 1 · 0⤊ 2⤋
Right now I think its 16.5 - thats my calculation.
Honestly, in the time you waited for someone to answer you probably could have figured it out yourself.
2007-03-07 23:41:56 · answer #4 · answered by Anonymous · 1⤊ 0⤋