An Arithmetic mystery - need help

[kakaballi]

Re: An Arithmetic mystery - need help

@Southie

The article uses the “lower” p to e to make the case that market is not expensive. The use of “fair value” was just my interpretation of what they mean as not expensive. I will edit previous post.

Why is market-wide pe ratio used so much? For me, it doesn’t make much sense (unless you adjust it for historical long term fluctuations).