02/07/10 1:27 pm - S&P 500 P/E Ratios back to normal, for now
We are still waiting for Q4/09 earnings reports to come in, only 71% have reported so far. But based on current estimates it is likely that we’re seeing P/E ratios return to normal after having spiked to levels over 100 for several months. As of now, annualized (12-month) earnings have rebounded back to about 50, which brought the P/E ratio back to about 22. Time will tell if those high earnings are sustainable, I personally believe they aren’t and we’ll see another increase in the P/E ratio, and eventually a fall in price balancing that rise. Below are the charts that incorporate the 4th quarter estimates.
Price and P/E Ratio Chart:
Price and Earnings Chart:
![[Most Recent Charts from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_4.gif)
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