P/E Ratio Hits 22-Year Low

Thanks to the recent plunge in stocks, the P/E Ratio for the S&P 500 fell to 12.05 based on yesterday’s close. That’s the lowest reading since April 17, 1989.

Here’s a look at the S&P 500 (black line, left scale) along with its earnings (gold line, right scale). The two lines are scaled at a ratio of 16-to-1.

Posted by on September 23rd, 2011 at 11:23 am


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