P/E As An Indicative Measure Of Crisis Phenomena On The Russian Stock Mark

About the author:

Alexander A. Parfenov,

Abstract:

The article covers the analysis of dynamics of P/E Ratio as an indicator of crises phenomena in conditions of Russian stock market. This indicator relates the financial and the real sectors of the economy, which is important taken into account in the observed disparities between these sectors of the economy. It was proven that P/E indicator takes on the highest meaning during the stable period or while economy flourishes, and a minimum takes on while crisis strength increases. The leading signal of indicator P/E has been obtained before the appearance of world financial crisis of 2008-2009. Based on the statistic analysis of historical data span of P/E the indicative levels of crisis and overheating of the economy have been calculated. In the work the significance of further investigations of the P/E indicator is shown, as well as levels based on indicator in conditions of Russian stock market, due to the absence of other such crisis being fixed.

References: