boddhisatva kbevans at
Mon Apr 15 23:41:04 MDT 1996

	I have a question for the economists and economically minded on the
list.  I recently heard an Asian securities analysts say that there are
different prevailing multiples within different countries and that they
cannot be compared for stock valuation.

	My question is what a multiple or a P/E ratio signals in Marxist
terms.  I have read that the multiples on the American stock exchange average
around 15, and that 17 or 18 is considered historically high, and therefore
overvalued (in crisis ?).  Although not in relation to this question, Mr.
Ehrbar wrote about "fictitious capital."  Is there any capital of that type
to be found within the logic of high multiples?

	Just as a side issue, does the "money" represented by the present
valuation of future profits have a similar effect to increasing the money
supply through the lending side?



p.s. - Can anyone recommend some reading on this topic?  How about the
development of the Pacific Rim countries?

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