PT - JOURNAL ARTICLE AU - Sangkyun Park TI - What Does the P-E Ratio Mean? AID - 10.3905/joi.2000.319382 DP - 2000 Aug 31 TA - The Journal of Investing PG - 27--34 VI - 9 IP - 3 4099 - https://pm-research.com/content/9/3/27.short 4100 - https://pm-research.com/content/9/3/27.full AB - 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.