Jack Bogle Slams Wall Street's "Unrealistic" Earnings Guesses, Says Market Valuations "Rather High"
October 11, 2017 at 05:08 AM EDT
Bogle's method differs from Wall Street's. For his price-to-earnings multiple, he uses the past 12 months of reported earnings by corporations, GAAP earnings, which include "all of the bad stuff," to get a multiple of about 25 or 26 times earnings.