how do I calculate the P/E of a Stock market index?
146779
You will need the stock prices at the time divided by the earnings per share and proportioned off by the weight given to them.  You will have to know all the P/Es of all the stocks and the weight given to all the stocks.  Many ETFs only list the top weighed stocks in their index.  Some will give you the names of all their stocks but not how they calculate the weight.  They might do it to prevent a true mimic of their index without paying the fees to own the index.  Generally they will mention the PE on their own.
152072
The answer is by using simple mathematics.\n\nFirst you need to decide how much of each stock you are going to buy - since not all stocks are priced equally some would be $20, other $400 and some 0.05 cents.\n\n$100,000 over ten stocks... Decide what ratio you will hold of each stock. E.g. 6:3:4:1:9:4:3:7:9:2\n\nSo totalling the ratio is 48. Now you can use a combination of the ratios and fractions to find out how much stock you can hold with your $100,000.\n\nI may have left you out on a limb there - but this calculation is uneccessary. Why don't you just buy your stock one by one until you run out of money? :P\n\nOK Lets try the example with 2 stocks and $100K\nyou want the weighting to be 3:4\nso you want \n3/7ths of your money to go to 1 stock\n4/7ths of your money to go to 1 stock\n\n3/7*100K=$42857.14\n4/7*100K=$57142.85\n\nNow say stock ZXC was $5 each and stock ABC was $67\n\nNow you go:\n$57142.85/$67=852.88 Stocks\n$42857.14/$5=8571.43 Stocks\n\nThere you go. Now do the similar calculation with your ten stocks! Haha!\n\nGood Luck!
38598
i think you're referring to the price/earning ratio, a tool used by investors to evaluate the value of a stock.  Here's a link to Investopedia that better explains it:
690896
http://finance.yahoo.com/q/hp?s=^IRX&a=4&b=1&c=2006&d=4&e=18&f=2006&g=d
385810
1.   Write down the amount of your total investment, including fees and expenses, if any. For example, if you bought $950 worth of stock and your fees were $50, then your total investment is $950 + $50, or $1,000.  \n  \n2.   Write down the amount of profit or loss associated with your investment. If your $1,000 investment in stocks is worth $1,200 one year later, then your profit is $1,200 - $1,000, or $200.  \n  \n3.   Calculate the ROI by dividing the profit by the total investment: $200/$1000 = 0.20, or a 20 percent annual ROI.
106382
P/E is not related to interest rate.\n\nP/E is the ratio of price to earnings of a stock.\n\nPrice paid vs earnings for the last year.\n\nThe lower the P/E is, the better.  \nTo rate a stock only by P/E, you would want to compare it for all stocks in the field the company is in.  Of course P/E is only one of the many measurements to take into consideration when deciding to purchase a stock.
623778
If you go to the Yahoo Finance website, type in SPY.  this is the ticker for the Exchange Traded Fund (ETF) of the S&P 500.  Many of the constituants of the S&P 500 do not pay dividends.  However, some of the companies do.  The dividend yield is 1.68% for the S&P 500.  If you can't find it I have included the link below.  It will take you directly to the yahoo finance page with thy SPY ticker.  Good luck
809669
Use this formula:\n\nWACC = We*Re + Wp*Rp +Wd*Rd*(1-t)\n\nwhere We is the weight of equity (8MM/16MM = 0.5)\nwhere Wp is the weight of preferred (1MM/16MM)\nwhere Wd is the weight of debt (7MM/16MM)\n\nRe is the return on equity\nRp is the return on preferred stock\nRd is the return on debt\n\nt is the tax rate = 0.4
976721
StockCharts has a good writeup on their calculation, including a sample EXCEL spreadsheet that does the actual calculations:\n\nhttp://stockcharts.com/education/IndicatorAnalysis/indic_movingAvg.html\n\nHowever, in regards to your specific question -- you start out with a simple moving average for the specified time period and then apply the exponential algorithm from there...
699956
P/E is Price /Earnings per share. Normally the EPS is taken as last declared year or trailing 12 months EPS. Forward EPS is the projected EPS for next year. When Forward EPS is taken in calculating P/E, it is called forward P/E.
744956
I expect that the first number is based on the annual return of the fund based on its price a year ago.  When I do the calculation I get approximately   5.7.  I expect the 18.6 is based on the share weighted earnings of the fund divided into  the market capitalization.  Large Japanese companies carry a pe of about that amount.  Toyota which makes up 6.8% of the fund has a pe of of 14.86.  CAJ which makes up about 4.0% a pe of 19.15
1168169
Goose is right. The formula is:\n\nFV = P x e^(r x y) \n\nwhere FV = Future Value; P is your principal, r is the annual interest rate and y is the number of years of continuous compounding and e = lim(n-->inf) of (1+1/n)^n\n= 2.7182818.(about)\nHere's link which explains it quite well and also has a periodic/continuous calculator to fool around with.\n\nhttp://www.moneychimp.com/articles/finworks/continuous_compounding.htm
1043286
no\n\nP/E is price/earnings, and is a function of market forces having virtually nothing to do with the actual value of tangible assets, efficiency of production, etc.;\n\nmoreover, P/E is not correlated to the number of shares either authorized or outstanding; per-share intrinsic value is ordinarily negligible, and the aggregate monetary value of share intrinsic values is typically only an exceedingly miniscule fraction of wholly-owned capital\n\nthere's a pretty decent explanation available on Wikipedia at http://en.wikipedia.org/wiki/PE_ratio
954677
Stock market indices are calculated from the quotes of the stocks of which they are composed. It is therefore a sort of average. If an index rose 1% to 445, then it just means that this average stock price rose one percent.\n\nThe number of stocks included and the exact way the calculation is done, is different from one index to another. \n\nFor instance:  the Dow Jones is composed of 30 stocks, the 30 biggest companies in the US and the value is just the sum of the of the values of the composants, multiplied by a suitable number.\n\nThe SP 500 contains (you guessed it) 500 stocks, weighted by their size, and is therefore more representative for the economy as a whole.\n\nOther indices take also in account the number of stocks in circulation, the amount of stocks exchanged each day, etc.
398683
Use log you will find\n\nor put\n\nx=3.597285024\n\nIts done
439816
set up the diffeq:\n\ndM/dt=1.05*M+alpha //money accrued at rate of 5.5% per year plus some amount alpha that is placed into the accout per year\ndm/dt=1.05*m -45000 //rate spent per year after retirement (assuming interest continues to accrue)..\nM(0)=162000; //intial ammount in retirement fund\nM(15)=m(0) //retirement fund begins expenditure with intial value of total saved + interest, or M(15)...\n\n// Note: 12 is measured from date of retirement...\nm(12)=0; //money only lasts 12 years, assume total amount expended...\nsolve dm/dt and plug in m(12)=0 to figure out what the total saved, m(0), must be present at the beginning of retirement in order to completely expend the money in the 12 yr period\n\nfinally, solve for M(t) and use the known values at M(0) and M(15) to compute the value of alpha.
169744
http://www.trueforex.com/calculating_pl.asp