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S & P 500 Forward P/E Ratio at great buy levels

Posted on 4/8/25 at 11:40 pm
Posted by DraggingPride
Member since Jul 2024
66 posts
Posted on 4/8/25 at 11:40 pm
Just doing a bit of research (yes I know the volitility is number 1 currently) but with everyone saying how over inlfated the market and indexes were for the last year..it's really a value buy at this point. Am I missing something besides the obvious geopolitical stuff?

ETA: it's below 18 currently
This post was edited on 4/8/25 at 11:41 pm
Posted by Big Scrub TX
Member since Dec 2013
36753 posts
Posted on 4/8/25 at 11:54 pm to
quote:

S & P 500 Forward P/E Ratio at great buy levels
DraggingPride
Just doing a bit of research (yes I know the volitility is number 1 currently) but with everyone saying how over inlfated the market and indexes were for the last year..it's really a value buy at this point. Am I missing something besides the obvious geopolitical stuff?

ETA: it's below 18 currently
18 is above the long-term average. It's certainly more fair than it was 2 weeks ago, but I don't know about "great buy".
Posted by PNW_TigerSaint
Member since Oct 2016
1201 posts
Posted on 4/8/25 at 11:56 pm to
What would be a great buy number?
Posted by DraggingPride
Member since Jul 2024
66 posts
Posted on 4/9/25 at 12:06 am to
Fair point, I guess I got a little too hyped up about the opportunity to enter
Posted by Big Scrub TX
Member since Dec 2013
36753 posts
Posted on 4/9/25 at 12:11 am to
quote:

What would be a great buy number?
A GREAT buy? Starting maybe at 12X?
Posted by slackster
Houston
Member since Mar 2009
89208 posts
Posted on 4/9/25 at 12:18 am to
18x is mostly based off of pre-tariff earnings expectations.

I prefer forward PE over traditional PE, but it’s still an educated guess at best. For perspective, GFC bottom was around 12 forward PE, which is still another 50% fall from here.

ETA: was closer to 9 forward PE…
This post was edited on 4/9/25 at 12:25 am
Posted by DraggingPride
Member since Jul 2024
66 posts
Posted on 4/9/25 at 12:23 am to


don't remind me now
Posted by slackster
Houston
Member since Mar 2009
89208 posts
Posted on 4/9/25 at 12:24 am to
quote:

What would be a great buy number?


Nibbling here is fine but you have to have a significant confidence in earnings to hold up an even appreciate to buy here IMO.



Food for thought…
Posted by beaverfever
Little Rock
Member since Jan 2008
34193 posts
Posted on 4/9/25 at 5:36 am to
I just worry the bid side has peaked. That’s not saying that prices have peaked just that the easiest money has been squeezed from the trade as we enter a more uncertain era.
Posted by williejameshuft
New Orleans
Member since Jul 2012
167 posts
Posted on 4/9/25 at 6:35 am to
quote:

it's below 18 currently


Now run the numbers with earnings at $225 …
Posted by Semper Gumby
Member since Dec 2021
534 posts
Posted on 4/9/25 at 7:10 am to
Nobody really knows how the E part of P/E will be affected by a trade war. My bet is it goes lower. As JPM’s Dimon said last week, “there will be blood”. You haven’t seen blood yet.
This post was edited on 4/9/25 at 7:15 am
Posted by fareplay
Member since Nov 2012
5874 posts
Posted on 4/9/25 at 10:33 am to
Them tariffs about to tank earnings and earnings forecasts for 99% of companies. I won’t be upgrading my phone this year
Posted by VABuckeye
NOVA
Member since Dec 2007
37457 posts
Posted on 4/9/25 at 10:36 am to
I haven't upgraded a phone in nearly 5 years and don't see the need now. It does what I need it to do.
Posted by fareplay
Member since Nov 2012
5874 posts
Posted on 4/9/25 at 10:40 am to
Biggest issue is battery life for me. 93% capacity after 1 year sucks.

We’re likely cutting discretionary spend Incase layoffs hit me. Just spend less now
This post was edited on 4/9/25 at 10:41 am
Posted by TxTiger82
Member since Sep 2004
34309 posts
Posted on 4/9/25 at 10:42 am to
quote:

S & P 500 Forward P/E Ratio at great buy levels


Might want to wait and see where the "E" portion of that ratio is at in the coming weeks. Financials kick off earnings season on Friday.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11598 posts
Posted on 4/9/25 at 11:58 am to
CAPE needs to be cut in half before we’re talking value with risk free rates where they are and rising. MBS is good value right now with rates rising due to their convexity profiles and limited risk of forced selling of single family homes.
Posted by Fat Bastard
2024 NFL pick'em champion
Member since Mar 2009
81939 posts
Posted on 4/9/25 at 12:00 pm to
quote:

I haven't upgraded a phone in nearly 5 years and don't see the need now. It does what I need it to do.


same. may have had mine longer than that
Posted by prostyleoffensetime
Mississippi
Member since Aug 2009
11907 posts
Posted on 4/9/25 at 12:06 pm to
quote:

I haven't upgraded a phone in nearly 5 years and don't see the need now. It does what I need it to do.



Unless your battery has gone to shite or you smashed the screen, I don't see the point.

Seems to me like if you just keep the OS up to date, everything will be fine.
Posted by DraggingPride
Member since Jul 2024
66 posts
Posted on 4/10/25 at 11:19 pm to
quote:

Them tariffs about to tank earnings and earnings forecasts for 99% of companies. I won’t be upgrading my phone this year
assuming the other countries can out wait us...which most can't, this is all to reduce ours once they budge
Posted by TDFreak
Coast to Coast - L.A. to Chicago
Member since Dec 2009
8118 posts
Posted on 4/11/25 at 9:46 am to
quote:

S & P 500 Forward P/E Ratio at great buy levels
quote:

Am I missing something besides the obvious geopolitical stuff?

The the 'E' in PE ratio is in the denominator of the formula. If companies start to report lower earnings guidance, the forward PE ratio will not look so good.

All comes down to whether you're bullish or bearish given the current economic climate.

Personally, I think the market got ahead of itself after the November election results. Tariffs not withstanding. I felt some profit taking was inevitable and not sure earnings could keep up with the optimism.
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