Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Market P/E ?
Old 02-21-2008, 02:08 PM   #1
Recycles dryer sheets
fluffy's Avatar
Join Date: Jun 2006
Posts: 82
Market P/E ?

How do you find out the "true" market or index P/E ? :confused:

For example, Yahoo Finance currently shows the following:
iShares S&P 500 Index (IVV): 13.62 P/E
SPDRs (SPY): 14.28 P/E
Vanguard Large Cap ETF (VV): 15.82 P/E
To add to confusion, going by ETF's providers websites:
iShares S&P 500 Index (IVV): 20.63 P/E (source:
Vanguard Large Cap ETF (VV): 16.5 P/E (source:
all as of 1/31/2008 ( doesn't list P/E for SPY, other than 13.73 FY1 P/E). How do you reconcile all this? These are all supposed to be more or less equivalent funds.

It's even worse with Small Caps. Yahoo shows IWM at 14.96 P/E and VB at 17.29 P/E. iShares shows IWM at 25.47 P/E while shows VB at 20.7 P/E, both as of 1/31/2008.

I know I'm supposed to stick to my AA and not worry about anything else, but come on!

We come in the spirit of hostility and menace
fluffy is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-21-2008, 02:47 PM   #2
Recycles dryer sheets
Join Date: Mar 2005
Posts: 329
For "random" indices comparing the P/e ratios is hard. Not all Value Indices have the same benchmark index. So they have different stocks in them. What you should be looking for is the P/E ratio reported by the benchmark guys. MSCI is a good place to start. Also S&P publishes the P/E ratios for their indices on their website - how your mutual fund tracks the index is a different story.

does that make sense?

Hope springs eternal in the human breast:Man never is, but always to be blest.
The soul, uneasy and confined from home,Rests and expatiates in a life to come.
lswswein is offline   Reply With Quote
Old 02-21-2008, 02:54 PM   #3
Thinks s/he gets paid by the post
twaddle's Avatar
Join Date: Jun 2006
Posts: 1,376
Ah, but what is the "true" P/E, grasshopper?

Trailing earnings? Forward earnings estimates? Operating earnings? GAAP earnings? Normalized earnings over the entire business cycle?
Favorite ERF quote: "I'm not going to waste my time on someone who's more interested in being stubborn or obtuse or intolerant." -- Nords
Favorite ERF error message: "Sorry Nords is a moderator/admin and you are not allowed to ignore him or her."
twaddle is offline   Reply With Quote
Old 02-21-2008, 07:24 PM   #4
Recycles dryer sheets
fluffy's Avatar
Join Date: Jun 2006
Posts: 82
Thanks for the replies. I know there's no one "true" P/E but I guess I expected all sources to use the same TTM data resulting in very similar values for what are essentially equivalent funds.

Using "official" index data makes sense. S&P shows 12/31/2007 P/E of 18.68 for S&P 500( ). I couldn't find P/E info on MSCI site -- where should I be looking? Thanks again.
We come in the spirit of hostility and menace
fluffy is offline   Reply With Quote
Old 02-22-2008, 01:19 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
Join Date: Oct 2006
Posts: 7,427
Interesting stuff Fluffy. I am surprised that the fund providers and yahoo have different numbers. I agree with you it is hard to make judgements about the relative prices of the market when no two numbers seem to agree.
clifp is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Hmm, stock market or Money Market/CD? Moneycoming Stock Picking and Market Strategy 4 08-14-2007 06:41 PM
Market Opinions. chinaco FIRE and Money 116 08-11-2007 10:54 AM
RE in down market bbbamI FIRE and Money 10 06-09-2007 07:18 PM
Market Experts frayne FIRE and Money 24 06-09-2006 03:30 PM
Generous Mr. Market? RockMiner FIRE and Money 8 12-28-2004 04:23 PM


All times are GMT -6. The time now is 03:33 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.