FYI: The stock market is climbing again and so too are valuations. The 12-month trailing price-to-earnings ratio (P/E) for the S&P 500 is currently around 22, according to FactSet, well above the 10-year average of close to 17.
The P/E ratio measures the price of a stock divided by its earnings per share (in the case of the S&P 500, the “price” is the index level). It’s a measure of how much investors are willing to pay for each dollar of corporate earnings. The higher the ratio, the most “expensive” stocks are (and vice versa).
Regards,
Ted
http://www.etf.com/sections/features-and-news/etfs-lowest-valuations?nopaging=1
