Just how pricey is this stock market?
Even with this year’s surging corporate profits, the Standard & Poor’s 500-stock index is trading at historically sky-high price-to-earnings ratios. Many “experts” seem to agree that the stock market is monstrously overpriced. But maybe it’s not. Let’s look at P/E ratios and see where we really are. Price-to-earnings, for the uninitiated, is simply a stock’s share price divided by its earnings per share.
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