I use the ASX P/E Ratio as a valuation tool and view this figure weekly in the AFR Weekend newspaper. Got a surprise this week to see that the market average P/E jumped to 19.2 on Oct 21 compared with 14.88 on Oct 14? (Page 33 as part of ASX P/E Ratio & Div Yield Series).
That's the largest change I've ever seen in a short space of time. Not sure if there has been a mistake, but the new P/E certainly makes the Aussie market look expensive. Anyone have an explanation?
