Valuation

Current P/E (trailing twelve month reported earnings): 20,25

Trailing P/E is a useful tool for understanding what has already happened in the market.

Current PE

Shiller P/E (price divided by the average of ten years of earnings, adjusted for inflation): 26,30

The Shiller P/E is far more useful for calculating expected returns going forward.

Shiller PE

On forward and estimated earnings the picture is a bit better, but it isn’t cheap (historical comparison). Analysts are currently expecting double digit growth for 2014 earnings.

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