Tuesday, September 22, 2015

S&P Earnings

Standard & Poors is projecting GAAP earnings for the 500 for the year ending 9/30/15 to be $93.90.  For the year ending 9/30/14 the earnings were $105.96.

 That is a drop of 11.4%.

 The TTM (twelve trailing months) PE as of Friday 9/18 was 21.17.  This is of course before the futures banged down the index today.

 Regardless, a 21 PE is optimistic for good earnings growth.  Or, there is a belief that there is nowhere else to go in the world to get yield.  Or there is a belief that the energy sector is solely responsible for the earnings decline.

 With $93.90 times 15 = an index at 1409.  Just sayin’.

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