Price-to-earnings ratios for the 30 Dow Jones Industrial Average components as of 1980, sorted from highest to lowest. The market traded at very low multiples, reflecting high inflation and interest rates. Most stocks traded between 5x and 12x earnings.

Dow 30 avg P/E (1980)

~8x

Highest P/E

MCD ~14x

Lowest P/E

BS ~4x

Fed Funds Rate

~20%

P/E 12–15x (high for era) P/E 8–12x (typical) P/E < 8x (distressed/cyclical)

1980 Dow P/E ratios range from 4x to 14x. The average is around 8x, reflecting the era of high inflation and 20% interest rates. Heavy industry stocks are the cheapest; consumer and service companies the most expensive.

Approximate trailing P/E ratios for 1980 Dow components based on reported 1980 earnings and stock prices. The Dow closed 1980 at 963. High inflation (13.5%) and Fed Funds Rate (~20%) severely compressed valuations. Note: many names no longer exist as independent companies.