Newcastle scores highly for worklife balance, the environment and its house price-to-earnings ratio
, though it is still in the bottom group nationally for health and income.
For example, Basu (1977) studied the high price-to-earnings ratio
stocks and low price-to-earnings ratio
stocks, and found that the high price-to-earnings ratio
stocks generated lower returns than the market while the low price-to-earnings ratio
stocks generated higher returns.
Shiller, who joined the call despite laryngitis, has spent years looking at the limitations of market measurement, like traditional price-to-earnings ratios
We've reached extremely gloomy valuation levels on equities, with price-to-earnings ratios
and dividend yields at levels not seen in the past 25 years, except during the 2008-2009 crisis," said Regis Begue, head of equities at Lazard Freres Gestion, which has 11 billion euros ($15.
(or P/E ratio): The most common measure of how expensive a stock is.
Based on the current share price, the price-to-earnings ratio
and dividend yield for 2009 were estimated at 8.
Bloomberg points out that the Shanghai Composite Index, boosted by increased lending, has traded at twice the price-to-earnings ratio
of the S&P 500 Index on the New York Stock Exchange.
The Halifax figures also show the house price-to-earnings ratio
, a key measure of affordability, is 4.
Bank of England Monetary Policy Committee member David Blanchflower said such a fall would restore the market to a "more sustainable" house price-to-earnings ratio
Chinese shares are expensive by almost any measure, including a price-to-earnings ratio
of 69 times last year's earnings on the Shanghai market, compared with 18 for the Standard & Poor's 500-stock benchmark index today.
Still, Rubalcava and other financial experts say that if the price-to-earnings ratio
for Standard & Poor's 500 falls from its current 19 to its historical median of 15 - which some top financial experts expect - pension plans such as Los Angeles' could require rising contribution rates from taxpayers.
The price-to-earnings ratio
is a valuation ratio of a company's current share price compared with its per-share earnings.