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Is the Market Overvalued?
Episode 40

Is the Market Overvalued?

Broken Pie Chart · BROKEN PIE CHART

September 1, 201920m 38s

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Show Notes

Commentators on CNBC are always opining about whether a market is overvalued or undervalued. But how would you look for yourself to make your own opinion? In this episode Derek Moore reviews the S&P 500 Index earnings per share, forward earnings estimates, PE Ratio, Forward PE ratio, and more. Plus, a review of what composes earnings per share growth including margins, share count, and revenue. Learn how to form you own opinions.

S&P 500 Index Earnings Per Share

S&P 500 PE Ratio and Forward PE Ratio

Where are we historically on S&P 500 Forward Price to Estimated Earnings?

Shiller PE Ratio or CAPE Ratio

Earnings Per Share Growth Components: Revenues, Margins, and Share Counts

Share Buybacks effect on Earnings Per Share

Interest Rate Effects on Discounting Future Earnings

Subsequent 5-year annualized returns from various forward PE ratios

Mentioned in this Episode:

Podcast on being an armchair economist https://razorwealth.com/is-a-recession-coming/

JP Morgan Guide to the Markets Report https://am.jpmorgan.com/blob-gim/protected/1383426387662/83456/MI-GTM_3Q19_August.pdf

Book: Broken Pie Chart https://amzn.to/31oy1hE

Razor Wealth Management www.razorwealth.com