New Math - 17.3=18.47

[chapter_2]

Re: New Math - 17.3=18.47

@Southie

This thread will highlight inconsistencies in the financial press ranging from benign to outlandish. The opening batsman is an article in WSJ Aug 15 comparing the S&P 500 P/E ratio with that in early 1994 based on last 12 months earnings. The current p to e ratio is 17.3 vs 18.3 going into 1994.

In the same section, in the daily Markets dashboard, this ratio is given as 18.47. Yes, based on last 12 months earnings.

So not only do we need to investigate whether p to e ratio presented r based on last 12 months or estimated next 12 months earnings, we can’t trust each of these earnings.

Unfortunately, MEME(S) has been taken private. Else we could have a field day. The possibilities would have been endless.

one is last 12 months ratio. the other of 1994. the third is a current ratio. any clearance?