The S&P500 has become a Forward p/e 12m of 16.05 x (picking up 12m forward EPS of $ 122.87), experts at JPMorgan pointed out on Wednesday.
“If we assume that the estimate for the S&P500 EPS from $132 in FY 2015 is reasonable, and that the market will remain willing to pay a PE fwd 12 m 16 x, the purpose of the S&P500 for December 31 would be the 2112 (+ 7% from current levels). If because of the proximity of the “tightening” the market decides to stop ‘just’ a PE 15.2x historical medium, the target for the S&500 would be the 2006 (a +1.6% from current levels),” analysts say.
*Table: EPS consensus expectations 2014-2015.
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