Operating at the Intersection of Technology and the Capital Markets
Tag: PE multiples
While the S&P 500 index is down approximately 21% YTD, it appreciated 44% from its pre-COVID high in February 2020 to its recent high during January 2022. One could argue that the pre-COVID high of February 2020 was a rich valuation for the index which benefited from years of accomodative Fed policy and low inflation. … Continue reading Earnings Estimates Are Too High
Forward PE multiples are too low. Given where the numerator is, S&P 500 forward PE multiples ought to be far higher. Earnings estimates are inflated and need to come down. The stark contrast between PE multiples during the Great Recession as compared to today's S&P 500 forward PE multiple of 22x should raise eyebrows. https://soundcloud.com/ceorater
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