EPS: where will multiples get?


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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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

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