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Ask TheStreet: Valuations
Ask TheStreet is designed to answer questions about the market, strategies, and investment methods. Please email us to ask a question, but keep in mind that we cannot offer specific investment advice.
Reader: Please help me to understand how P/E ratios are established. If a company earns X in a given year, how does the market determine the company's future earnings potential? And, if a company reports somewhat disappointing earnings in a given quarter, how are the adjustments to potential growth calculated? --P.D. ...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,353.30 | 1,101.01 | 2,187.96 | 35.16 |
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