As earning reports rolled in, I have been watching the as-reported PE of the Russell 2000, Nasdaq, and S&P 500. The PE of the Russell 2000 is now negative. Meanwhile, the fluff estimate based on “operating earnings” by Birinyi Associates is a mere 16.75.

Earnings Estimates

The above chart from the Wall Street Journal.

When the earnings went negative, the Journal put out this “NOTICE TO READERS: The as-reported P/E of the Russell 2000 is negative because of the many ‘1 time’ non-cash charges that must be reported because of GAAP.”

The as-reported earnings of the S&P 500 is now a very expensive 23.61 vs. the fluff operating estimate of 17.05.

By the way, 17.05 is not exactly cheap.