03-14-2012, 06:23 PM
GGD wrote:
At what point will it no longer be considered "cheap". The PE was about 12.7 just after the last earnings were announced, and now it's up to around 16.6. Is it still "cheap"?
The S&P 500's P/E average ratio is currently 23.2. For the last decade it was 20.2. In what universe does the world's greatest corporation not warrant at least an average P/E ratio?
http://www.multpl.com/table
Summary: You're damn right it's still cheap.