Tuesday, November 20, 2007

P/B and Earnings Index

A statistic that's grabbed my attention recently is the number of companies trading for less than book value--notwithstanding why this would justifiable occur. Per Yahoo Finance, as of market close 9/20, this number is 906.

Another number I've started to track is what I call the earnings index. This compares, on a pre-market market value-weighted basis, the earnings day closing price index of all companies that report earnings and compares this to the S&P 500. Results to be posted soon.

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