Running_Man
Thinks s/he gets paid by the post
- Joined
- Sep 25, 2006
- Messages
- 2,844
https://www.thestreet.com/investing/stocks/will-the-real-pe-ratio-please-stand-up-14923577
I found in this article interesting informatino on the Russell 2000 that over 600 companies make no money, and if you take the earnings of all the companies divided by market cap you get PE of over 75, but if you do what ISHARES does you ignore the 671 out of 2000 companies that have no earnings to get PE of 17.
Even more interesting is from 1975 to 1995 small cap stocks (stocks other than 100 biggest) earned roughly one half of the total earnings of all companies in the US. Now the top 100 earn 84.2% of all money earned by publicly trading companies.
I found in this article interesting informatino on the Russell 2000 that over 600 companies make no money, and if you take the earnings of all the companies divided by market cap you get PE of over 75, but if you do what ISHARES does you ignore the 671 out of 2000 companies that have no earnings to get PE of 17.
Even more interesting is from 1975 to 1995 small cap stocks (stocks other than 100 biggest) earned roughly one half of the total earnings of all companies in the US. Now the top 100 earn 84.2% of all money earned by publicly trading companies.