Overvalued Stock Market

 

FOR EDUCATION ONLY

 

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Gregory Mannarino: “The Stock Market Is 60 to 70% OVERVALUED.”

Note: I subscribe to Gregory Mannarino’s videos.

 

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The stock market on Monday, December 23, 2019

 

                                            Closed                                           60%                                         70%

 

DOW                                28,552                                          17,845                                       16,785

S&P500                            3,224                                            2,015                                         1,896

Nasdaq                             8,946                                            5,591                                         5,262

Russell 2000                 1,674                                            1,046                                             985

 

For example, the DOW would be fairly valued around 17,304 (28,552 : 1.65).

 

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Financial analysts determine valuations using P/E ratios.

The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as the price multiple or the earnings multiple.

P/E ratios are used by investors and analysts to determine the relative value of a company’s shares.  It can also be used to compare a company against its own historical record or to compare aggregate markets against one another or over time.

Earnings per share is a company’s profit divided by the number of common stock shares it has outstanding.

 

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