Subject: Re: brkb- the new value line is out,
Back in the late 1990's and early 2000's Value Line would have Cisco at 150 times earnings with expected growth of 25% annually and Intel at 70 times earnings not far behind at 20% now-and-forevermore. Berkshire? 6%! Six percent for years, and years, and years was the norm for Berkshire according to Value Line.

The valuation levels they predict are for a different reason.
I think they find a good yardstick value metric for each firm (book, cash flow, dividends, earnings, whatever), and look at the 10 year average multiple. Maybe more than 10 years, but it's backward looking.
If a firm has been expensive for a long time, they implicitly expect it to remain so, and vice versa.
That methodology is consistent, and probably useful more often than it's crazy.

Their "Average Annual P/E Ratio" field was 9.60 for Microsoft a few years back, and now it's 32.21.
If you're using that data source as an expectation of "normal", you need to be pretty flexible about your expectations.

Jim