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URL:  http://boards.fool.com/for-everyone-who-is-having-trouble-averaging-30535364.aspx

Subject:  Re: What is your Avg Portfolio PE? Date:  2/10/2013  8:00 PM
Author:  BenHacker Number:  13477 of 21263

For everyone who is having trouble averaging "PEs" after the (excellent) summaries by DTM, just switch to earnings yields or "EPs" and you're going to find yourself in a much more logical place.

Two stocks at 10x and 20x (PEs) become 10% and 5% respectively when looking at EPs.

The "average" of 10% and 5% is 7.5%, or a 13.33 PE. Probably more intuitive for most of us.

Ben
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