Why Doesn’t Normal P/E In Historic Graph Match With Forecasting One?

The earnings and price correlated historical graph (the main graph) includes forecasting data when you are running timeframes.  In contrast, the “Historical” normal P/E ratio forecasting calculator is utilizing only completed historical data.

Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Therefore, in order to get the same normal P/E ratio on both the main graph and the forecasting graph, you have to scroll all of the earnings that are marked with a capital “E” off of the main graph, and then click the number of years you are looking for.  By doing this, you will get the pure historical normal P/E ratio with no forecasting data included.

Here is an example below – using the 10-year timeframe:

Charlie Munger: Invert And Use “Disconfirming Evidence”

Charlie MungerCharlie Munger is considered to be one of the best investors and thinkers alive today. His thoughts and statements on investment research, investment psychology, and general rational behavior are often incredibly insightful. Anyone can learn something from this billionaire investor and philosopher. Q2 2020 hedge fund letters, conferences and more If you’re looking for value Read More

Article by F.A.S.T. Graphs