Replies to post #1837 on Global Value Investing

[ratobranco]

I'm using the standard and poors numbers on their website:

http://www.standardandpoors.com/indices/articles/en/us/?articleType=XLS&assetID=1245178702929

ttm SP500 earnings is 87.25 as of 4Q. At SP500 1365, that gives 15.64 ttm P/E.

If you go to the spreadhseet on Shiller's Yale site, the average for non-cyclically adjusted, ttm earnings is around 15.49.

These permabull analysts love to "massage" the numbers to make the market look cheaper. Bottom line is that the only accepted valuation measure is GAAP ttm earnings, and by those metrics, market is at slightly higher P/E than normal.