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We try to compile a list of P/E ratios for the whole portfolio every so often - I'd do it more often but it all has to be done by hand; hopefully one day there will be a nice 1 button to press and I can get this sort of data daily. Until then, this is our latest installment.

Earlier we explained the rationale behind the P/E ratio and how I use it in January (Jan 20: P/E Ratio for Portfolio)
Our last update was in May which I updated some top line thoughts which I'll mostly cut and paste below (May 19: P/E Ratio by Position May Update)
Recently we asked does P/E ratio even matter as some of the best performing stocks even in the recent carnage are those with the most astronomical valuations (Jul 2: Does Valuation Matter?) Great arguements can me made on both side but at heart I like growth at relative value in most cases (always make exceptions)

Here are the key points we brought up in May

1. I like earnings; it is very hard for me to value stocks with no earnings i.e. valuing hope or earnings in 2011 is difficult. (we do own some of this nature such as US housing stocks)
   
2. At heart, while not a pure value investor, I am a relative value investor - i.e. all things being equal I prefer growth at a reasonable value. That however, does not always work, certainly solar has been one example of this. I don't list growth rates below but I peg a growth rate I think viable for a 1-3 year period as my countercheck to P/E ratio.
   
3. I look forward, not backward - what I've done here is look at Dec 2008 estimates - or if the stock has a different year end than December, the yearly period closest to ending in December 2008.. If you looked backward you would of missed the entire fertilizer run and the entire coal run, deeming the stocks 'expensive' when in fact they were dirt cheap based on what was coming in the upcoming quarters/years.
   
4. In most cases I try to buy stocks I believe the analysts are missing part of the story and understating earnings potential - so the P/E ratios below are not necessarily what I believe to be true.
   
5. Except for the a few cases (investment banks and US housing) I believe almost every company will beat current analyst estimates for the year, and this is the whole basis for my investing style. So what seems "expensive" might become cheap by the time we get to December 2008 (or December 2009 in some of my themes)
   
6. In some sectors, I believe 2009 growth will be so good, I am looking past somewhat average 2008 estimates and looking out 1 more year (coal being the best case)
7. I am willing to pay up for scarcity value (i.e.