Historic S&P 500 Price to Earnings Ratio


S&P 500 P/E ratio from http://www.multpl.com/

One of the metrics I use when looking at stocks it the price to earning ratio.  I think of it as an indication of the rate of return on an investment.  This is not entirely true. Other characteristic  also affect the future behavior as future expectations of earnings also play a role, and trust in the management etc. Dividends provide a more sure income. Continue reading