Valuation – Consensus Forward P/E vs. Expected EPS Growth The P/E premium reflects higher expected EPS growth, supported by a strong current correlation between EPS growth forecasts and P/E multiples. Image: Goldman Sachs Global Investment Research
S&P 500 Valuations Based On Forward Operating EPS The sharp market sell-off has triggered a reversion in S&P 500 valuations, which have dropped from 22.5x to 18.5x forward earnings over the past month. With the long-term average near 16x, there may still be scope for further declines. Image: Real Investment Advice
EPS – Real M2 Growth vs. S&P 500 12-Month Forward Earnings-Per-Share Estimate The decline in real M2 growth does not bode well for S&P 500 earnings. Image: Morgan Stanley Wealth Management
S&P 500 Index Forward 12-Month EPS Growth and Fed Funds Rate Historically, Fed rate hikes tend to be a headwind to profits. Image: Morgan Stanley Wealth Management
EPS Growth – MSCI U.S. 12-Month Forward Earnings per Share Estimates of EPS growth continue to hold up well. Image: Morgan Stanley Wealth Management
Valuation – Long-Term EPS Growth Rate and 12-Month Forward Price-To-Earnings Ratio Will these high-fliers fall back to earth? Image: BCA Research
Annual S&P 500 EPS Growth and S&P 500 Forward P/E Goldman’s baseline scenario suggests S&P 500 EPS growth of 0% in 2020 and forward P/E multiple equals 19.4x at year-end 2020. Image: Goldman Sachs Global Investment Research
S&P 500 Index Earnings per Share (EPS) Forward Estimates, Next 12 Months, Since 2018 The consensus S&P 500 earnings for the next 12 months has increased from $173 to $175. See why The Risk Of An Earnings Recession in 2019 Is Less Than You May Think. Image: LPL Research
S&P 500 Forward Earnings Estimates Wall Street’s optimistic earnings projections have sparked debate about their alignment with economic realities. While many analysts remain bullish, there are growing concerns about the sustainability of these projections. Image: Real Investment Advice
S&P 500 TTM YoY EPS vs. Fed Funds Target Traditionally, when the Fed starts cutting interest rates, corporate profits tend to decelerate. However, this’s not the case today, highlighting the unique economic landscape we face. Image: BofA US Equity & Quant Strategy
Earnings – MSCI U.S. 12-Month EPS and U.S. Nominal GDP 12-month forward EPS and U.S. nominal GDP have a strong relationship. Image: J.P. Morgan