Some stocks are evaluated as low as 4 or even 3 times earnings, while others as high as 30, 40, 50 or even more times. The 425 industrial stocks composing the Standard & Poor index are selling at an average of 19 or so times their latest twelvemonth earnings. The more the market values a certain stock, the higher it places its multiplier, and vice versa. If you have some idea about the kind of multiplier the market is likely to accord a certain stock, you should be able to get into the situation at a profitable level. The question is, of course, how? Generally speaking, the 19 or so times earnings for Standard & Poor's industrial stocks is undoubtedly high, compared with 12 to 15 times earnings for the inflationary period of 1954-57.

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