It would be ideal if one could predict objectively the modulation of this ratio based on a predictive in silico platform.
500's ratio, based on trailing reported earnings, was more than 30.
The Sharpe ratio based on annual returns was a very healthy 1.27.
To value a company, they establish historical ranges for the price-to-earnings ratio based on the 5- to 10-year history of the company and its peers.
It then compares the actual ratio of prices to rents with a "fundamental" ratio based on user cost.
The average S.& P. 500 stock, meanwhile, had a price-to-earnings ratio, based on projected 2000 earnings, of almost 30, or an "earnings yield" of about 3.5percentt.
Now, earnings have risen and stock prices have fallen, so the average big stock has a P/E ratio, based on projected 2001 earnings, of 21, or an earnings yield of about 4.8percentt.
That's a pretty good ratio, based on my previous relationships".
PEG**: Price-to-earnings growth ratio based on estimates for coming twelve months.
In contrast, the five-year average P/E ratio based on trailing earnings is 24.
Figure 7 illustrates the distribution diagram of PSNRY versus subsample ratio based on Table 5.
