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S&P 500 (Trailing Twelve Month Earnings)

S&P 500 (TTM/Trailing Twelve Month Earnings)

There are different sources regarding EPS-figures out there in the market. Here I want to show the EPS-figures, distributed by factset-research. Below following chart I will show then a longterm-P/E-history since 1990.

S&P 500 (Trailing Twelve Month Earnings), source: Factset (Aug. 2016)original chart-source:

Of course, one can see, that the market is currently not carrying a single-digit P/E-Ratio. Still, one has to think about the FED-Model and its implicit comparison between stocks and bonds. Bonds normally serve as the alternative to stocks - but with a bond-yield below the dividend-yield of many stocks, bonds may not be the real alternative?!? This is nowadays often referred to as TINA ("there is no alternative" - to stocks).

Anyway, in the years 1991 up to 2005 TTM-PE-ratios were pretty high (> 19) for a longer period of time!

original chart-source: