Daily Archive: February 10, 2012

Feb 10

Don’t forget the E in PE

Source: RBA The above left chart, Forward PE Ratio, shows that the Australian sharemarket is potentially relatively cheap at the moment. The forward PE ratio, which is the ‘current price’ of the Australian sharemarket divided by forward estimates of earnings, has only been lower during the GFC and the 1990-91 recession ‘we had to have’. …

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