are near the high end of their historical ranges.' She was speaking on CBS' 'Sunday Morning' programme.
Last week, however, they were trading 2 to 3 percent lower of their sectoral average price-earnings ratios
. The property sector, on the other hand, continued to post positive trades at the price-earnings ratio
of 25.33 times.
The Articulation of Price-Earnings Ratios
and Market-to-Book Ratios and the Evaluation of Growth, Journal of Accounting Research, 34, 235-259.
Ghalibaf Asl also said the price-earnings ratios
showed stock prices were not over-inflated and that he didn't think the stocks boom was a bubble.
The second covers price-earnings ratios
, market-to-book ratios, and stock returns; earnings and stock returns; and fundamental analysis and stock returns.
According to Block, "Molodovsky's counter movement principle (rule) was a major breakthrough which provided analysts with their first clear insight into the behavior of price-earnings ratios
" (Block, 1995).
This implies a preference for large-cap stocks at the expense of mid and small caps, and for companies with low price-earnings ratios
and high yields.
They tend to sell shares in large firms, in firms with high price-earnings ratios
and in firms with high market-to-book ratios.
All other major variables whose growth appeared to have departed from historical norms were either not abnormal or derived their growth from rising price-earnings ratios
. The question remains, however: What triggered the surge in price-earnings ratios
British share prices, too, were less highly valued than Wall Street's on terms of price-earnings ratios
Analysts who hold this view point out that, in the past, high price-earnings ratios
have usually been followed by slow growth in stock prices.
by themselves are not effective predictors of stock market value.