Why don't they calculate price/earnings ratios for mutual funds?

Question

Why don't they calculate price/earnings ratios for mutual funds? How hard would it be for them to do a weighted average based on the shares they have in the fund?

Answer 1

I have seen average p/e ratios calculated in some of the research reports on specific mutual funds.  The mutual fund semi annual reports also may provide such info.

Answer 2

As others pointed out, you can get the average PE for mutual funds. but more importantly, you should understand that you learn very little from that average.  You would learn how aggressive (higher risk) the fund is compared to others but not much else.  Stocks trade on expected earnings.  PE ratios are on past earnings.  Higher PEs are justified by faster growth rates, high cash flows, good balance sheets, reliability of earnings, etc. etc.   PEs without other info means almost nothing.

Answer 3

Morningstar does it if you put the funds into a portfolio and then click Fundamental.