S&P 500 P/E Ratio at 17.64 at end of 2nd quarter

The P/E ratio for 2008 is higher than the 15.78 historical average of the index since 1935. But, the current ratio falls below the 5-, 10- and 20-year historical averages, which range between 20.05 and 25.98.

Based on 2009 earnings estimates and Tuesday's closing prices, the P/E ratio for the S&P 500 is 18.25.

The ratio is measured using full-year net income estimates and closing prices on June 30 for companies that make up the S&P 500 index.

Based on operating earnings estimates for 2008, which exclude special one-time items, the P/E ratio is 14.54. The ratio for 2009 is 11.74.