As of last Friday, per S&P Dow Jones Indices estimates, 1Q17 sales of S&P 500 companies were $293.82/share. This amounts to a decline of 2.4 percent quarter-over-quarter, but year-over-year sales were up 7.2 percent. This was the fastest quarterly growth … Continued
The price-to-earnings ratio is probably the most commonly used tool in equity valuation. Within that, all too often, forward earnings are used. Trailing earnings are seldom employed. In and of itself, in a normal cycle, there is nothing wrong with … Continued
Chair Yellen brings up issue of “elevated” P/E and P/S ratios In 1996 and 2014, markets ignored Fed chiefs’ valuation warnings Tight R between SPX and operating earnings, which probably peaked in 3Q14 One of the nuggets in Federal Reserve … Continued