Showing posts with label US Stocks. Show all posts
Showing posts with label US Stocks. Show all posts
Monday, August 13, 2018
Monday, March 20, 2017
Factset earnings update
Factset updated its Earnings Insights:
Earnings Growth: For Q1 2017, the estimated earnings growth rate for the S&P 500 is 9.0%. If 9.0% is the actual growth rate for the quarter, it will mark the highest (year-over-year) earnings growth for the index since Q4 2011 (11.6%).
Valuation: The forward 12-month P/E ratio for the S&P 500 is 17.8. This P/E ratio is above the 5-year average (15.0) and above the 10-year average (13.9).
It is worth also to take a look at dshort.com earnings analysis Just to put this into a longer term context:
I think one important factor is not taken into account here, the historically low interest rates. We know from CAPM that it must result in higher P/E ratios. This post on Damodaram Online suggests an alternative approach in this ultra low yield environment, comparing stock P/E to Bond P/E.
This suggests that we aren't on a bubble territory yet.
Valuation: The forward 12-month P/E ratio for the S&P 500 is 17.8. This P/E ratio is above the 5-year average (15.0) and above the 10-year average (13.9).
It is worth also to take a look at dshort.com earnings analysis Just to put this into a longer term context:
I think one important factor is not taken into account here, the historically low interest rates. We know from CAPM that it must result in higher P/E ratios. This post on Damodaram Online suggests an alternative approach in this ultra low yield environment, comparing stock P/E to Bond P/E.
This suggests that we aren't on a bubble territory yet.
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