We know there are multiple types of indexes like market cap weighted and equal weighted indexes, etc., Currently am working on S&P 500 and is there any way to calculated PE ratio for S&P 500 using PE ratios of individual companies.
if we have EPS, no. of shares outstanding and market capital for all the stocks then we can calculate, but is there any way to calculate in the above process.
with the help of below wiki link
Weighted Index P/E= market capitalization/net income Market cap = market price x current number of shares Net income = EPS x weighted average number of shares