Yes, he used 10 yr
avg earnings, but he divided them by a number that was correlated with interest rates.
And if the growth of the American economy is taken into consideration, as opposed to viewing it as mature which makes a Shiller PE (10 yr
avg earnings) analysis more useful, that changes things a bit too.
I think it works because it captures growth whereas applying a multiple to 10 yr
avg earnings does not.
I was taking 10 yr
avg earnings.
So for a mature business, 10 yr
avg earnings is likely going to be sort of a mid-point for the business and a nice estimate of earnings power.
Not exact matches
UBS: Payrolls & private payrolls +190 k, unemployment down, soft
avg hrly
earnings We project continued strength in payrolls in August, a consequent decline in the unemployment rate, no change in the weak path of average hourly
earnings, and a flat workweek.
So A&P had a P / E based on
avg 5 year
earnings of about 6, and it traded below net current assets (which were largely liquid).
We've no idea on
earnings growth, but the
avg.
If a company had
earnings of $ 1, $ 2, $ 3, $ 4, $ 5 and $ 6, Graham would likely say
earnings power is $ 7 not $ 3.5 (
avg.
Need to look at either 10 yr
avg operating
earnings, or 10 yr
avg as reported
earnings excluding 2008.
Maybe a few more % over 25 % could be in the USA but I doubt it would be much higher than the 80 million, and would only include those people (families) on well above
avg weekly
earnings in the US.
-- A cheap residential electricity supply historically costing under 2 %
avg weekly
earnings ~ $ 22 / wk / person — A reliable electricity supply 99.9 % time with no extended «brown outs» and «black outs» only occur during extreme weather situations.
The age group with the highest average
earnings is the 41 - 50 year old group (
Avg.
Job titles such as Business Development, Sales Manager, Marketing Director / VP, and National Accounts command higher incomes, with Sales Directors and Vice Presidents reporting the highest
earnings (
Avg.