10-Year Normalized P/E Ratio (Part 2 of 3)
At any given point in time, figuring out how to interpret the P/E 10 may not be as straightforward as it seems. Figure 2 (below) plots the P/E 10 for the S&P 500 since 1880 to date. If we consider the historical average equal to 18.06 to be a normal or fair value for the…
