%0 Journal Article %A Sangkyun Park %T What Does the P-E Ratio Mean? %D 2000 %R 10.3905/joi.2000.319382 %J The Journal of Investing %P 27-34 %V 9 %N 3 %X The P-E ratio of S&P 500 stocks is found to be fairly well explained by future (ex post) movements of corporate earnings and interest rates. Stock markets appear to foresee as far as eight years with reasonable accuracy. This finding suggests that the P-E ratio is of limited use as a measure of stock valuation. %U https://joi.pm-research.com/content/iijinvest/9/3/27.full.pdf