Some useful factoids on the S&P index’s price/earnings multiple at its peak, at its recent nadir, and today:
- March 2000: 32.8
- October 2002: 25.7
- May 2007: 18
Of course, that is all relative stuff, so it’s worth looking at the long-term historical figure. There is considerable debate here, but the consensus, such as it is, is that the historical S&P multiple based on operating earnings is around 12.