I’m a huge fan of P90X fitness programs, but 17X is not about fitness. It’s about the U.S. stock market.
The stock market is a forward-looking barometer and reflects the future expectations of the economy.
One of the oldest and commonly used metrics to value individual stocks and the stock market is the price-to-earnings ratio (P/E ratio). The P/E ratio is defined and calculated as market price per share divided by annual earnings per share.