General comments/chat, page-17745

Hi Sarge,
The PE is a bit of a guess and numbers from 15 to 30 are common for growth stocks so this also adds another variability into the valuation estimate.
wombat777 on his valuation posts often gives a spread so that you can see how much difference the PE can make.
For the record, the long term average PE on most global stock markets is 15 and so, in theory, whenever the average PE on the ASX is above 15 then you can argue that the market is overpriced and when its under 15 then its under priced. The problem with averages is that it lumps all shares together and some companies are better run and in a better market space etc than other companies.

Some current PE examples are: CSL 39, ARB 36, CBA 20, BHP & RIO are both 10, FMG 6, NST 16.
Newly listed ART is flying but doesn't have a PE because it doesn't make a profit. Afterpay is the same because it has negative earnings per share.
The iron ores miners are probably low because the current Iron Ore price is probably at unsustainable levels but its already higher than I would have tipped - if I was to try to tip metal prices.

Many small to medium private companies sell at PE's of 3 or thereabouts but then you can't trade their shares on a daily basis either and so this automatically values them lower.

Hope this helps