In Section 2, it was noted that the earnings replacement capacity of the Canadian RIS is quite complete based on the first two pillars alone
at earnings levels up to one - half of average wages and salaries, but declines thereafter.
If you look at the data I presented in my previous post, I estimate roughly how many authors should be expected
at each earnings level.
Not exact matches
SmartAsset looked
at the median
earnings for full - time working women, as well as the number of women with high -
level degrees and those who own businesses.
The S&P 500's forward price - to -
earnings, or P / E, ratio is a shade under 17 times right now, putting it
at its lowest
level since 2016 and just 11 % above its long - term average, according to BAML.
Can valuations stay
at the
level that they are or is the stock performance going to be capped
at how much
earnings growth is?
That was until 2006's «Halloween Surprise,» when then finance minister Jim Flaherty introduced a law to make those kinds of
earnings fully taxable
at the corporate
level, beginning in 2011.
«They're changing the way we watch TV and the way we stream video, but
at 70 times
earnings for a company that doesn't generate any cash flow, it's hard for me to invest
at these
levels.»
With the dollar now
at the lowest
level it's been in a decade, receipts in foreign currency are starting to translate into higher
earnings, faster sales growth or both.
Traditional C - corporation status provides the protection of limited liability for shareholders, but
at a cost of double taxation of
earnings —
at both the corporate and shareholder
levels.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's
earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the
levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's
earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or
at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax
earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
«We believe the bias for stock prices in general remains to the upside, underpinned by a growing economy, low interest rates and increasingly, cheaper oil... With operating margins
at elevated
levels, top line growth is poised to more quickly bleed through to the bottom line, thus supporting
earnings.»
The election takes place amidst an improving global economy with global
earnings revision ratios
at 5.5 - year highs, global PMI's
at their highest
levels since early - 2014, Asian exports
at 12 - month highs and US wage growth
at 7 - year highs.
However,
at nearly 63 times current
earnings - a whopping p / e ratio, to be sure - even if the firm were to grow its profit to the
level of Berkshire - $ 8.5 billion - it would still lack the liquid assets and marketable securities the house that Warren Buffett built has, and it would not have a diversified income stream, making it far more vulnerable to changes in the competitive landscape; a major concern when you contemplate that Google operates in an industry where dramatic shifts consumer behavior can happen overnight.
At the same time, an implicit assumption of Canadian pension policy has been that beyond a certain
level of
earnings, people should look after themselves.
In Table 1, benefits provided by Pillars 1 and 2 are expressed as replacement rates
at three
levels of
earnings: 0.5 times average wages; 1.0 times average wages; and 1.5 times average wages.
Elsewhere, the MSCI Emerging Markets Index, which has been particularly hard hit, is trading
at less than 12x
earnings and barely 1.25 x book, a
level last seen during the lows in early 2009.
EWZ is trading
at about 9 times trailing
earnings, one of the lowest for emerging markets and near the P / E
level of March 2009, just before it took off.
Compared to where it was a year ago today, the stock is now trading
at a higher
level, reflecting both the market's overall trend during that period and the fact that the company's
earnings growth has been robust.
Profit margins and
earnings growth have remained
at record
levels, despite weak global growth and a number of other macro threats.
The price to
earnings ratio (P / E) tells an investor how many years it will take to return his investment were the company
earnings maintained
at a constant
level, and were all those
earnings to be paid to the shareholder.
One possible explanation is that
earnings are
at an unusually high
level and likely to revert to normal
levels that would be a reason why
earnings - price ratios are low.
On the other hand, it is important to note that the spread between
earnings price ratios and real interest rates are
at near record
levels, and that is a crude measure of the equity risk premium.
This observation is based on our analysis of JETS
at the stock
level, where we analyze
earnings quality, true profitability and the market - implied cash flow expectations embedded in stock prices.
The WisdomTree India
Earnings Fund ($ EPI) has pulled back to new support of the prior breakout
level at the $ 20
level, and is holding up so far.
Although a number of factors led to this decision, a few worth noting are a modest
level of debt (22 % of the capital structure, as shown in the Capital Structure box), ample cash (nearly $ 15 billion
at yearend 2011, as noted in the Current Position box, which is directly below the Capital Structure box), and a lengthy history of solid
earnings (which can be seen in the Statistical Array).
An investor would be well served to ignore the buy, sell or hold recommendation S&P attaches to each of the reports, instead looking
at the growth in
earnings, debt
levels and the return on equity rates for past several years.
Companies that can maintain
at least some
level of
earnings are, on the whole, more stable.
Only a combination of ignorance and alchemy would reward this higher
level of
earnings with a high P / E, when the source of the
earnings was the acquisition of companies valued
at low P / Es.
If we examine median price /
earnings ratios of different groups in the S&P 500
at the 2000 market peak and
at current
levels, we observe the following pattern:
The Wells Fargo Investment Institute recently suggested that
earnings growth may have peaked in the first quarter, while Morgan Stanley calculated that expectations for stock returns were
at their lowest
level since before the financial crisis.
Add the fact that much of the
earnings - per - share growth is created by making acquisitions of slower growing, lower P / E companies, and one might think that the new, larger
level of
earnings should be valued
at a smaller multiple than the prior
earnings were.
On the other end of the spectrum, if investors feel that future
earnings will be underwhelming, its P / E ratio may languish
at a relatively low
level.
Stock prices are up and valuations are
at extreme
levels despite faltering
earnings, Fed rate hikes and a slowing economy.
Adjusted net income came in
at $ 4.78 billion, up about 10 % from year - ago
levels, and that worked out to adjusted
earnings of $ 1.74 per share, topping the consensus forecast for $ 1.72 per share among those following the stock.
Higgins adds that valuations were much more frothy: «Back [in the 90s], the price / 12m trailing operating
earnings ratio of the S&P 500 climbed to around 30
at its peak, which was roughly double its
level in 1994.
Currently, the S&P 500 trades
at about 10.3 times the
level of
earnings observed last year.
While the current price / peak -
earnings multiple is already
at an elevated
level above 18, what I'll call the «P / E equivalent» multiples on other fundamentals are: 21 on the basis of book values, nearly 23 on the basis of enterprise value / EBITDA (which factors in the increasing share of debt on corporate balance sheets), over 25 on the basis of revenues, and 29 on the basis of dividends (largely because dividend payout ratios remain relatively low even on the basis of normalized
earnings).
Although
at 22 time trailing twelve month
earnings the market may seem expensive, selling your stocks on some magic valuation
level and fear will actually make you wrong.
If this
earnings growth result stays
at this
level, it will be the second highest
earnings season since 2011 as in that year we saw 11.6 %
earnings growth.
At the company
level, Bank of America and Morgan Stanley are the key drivers of growth in the sector, due in part to comparisons to weak
earnings in the third quarter of 2012.
«
Earnings and revenues are going to take the next
level of the market to new highs,» says Rosenberg, who adds that the market isn't overvalued
at current
levels.
At current
levels, Japanese equities are both absolutely and relatively cheap; the equity risk premium is about 7.8 % and the forward price /
earnings ratio is less than 13.
The cyclically adjusted price - to -
earnings (P / E) ratio for U.S. stocks was
at its highest
level since March 2002 as of end - July according to Thomson Reuters data, a
level last associated with a major market correction.
These experience
earnings growth of
at significant
levels, 70 percent, 40 percent.
The Swiss government argued that to allow the franc to continue
at such an elevated
level would hurt Swiss exporters and create a drag on their
earnings.
The price -
earnings (P / E) ratio for the S&P has stabilised
at around 30, though it remains
at a
level well above its long - run average of 14 (Graph 14).
A prudent investor will look
at companies that have
earnings with a high
level of predictability that has been proven that they can can make money.
The Shiller Cyclically Adjusted Price to
Earnings Ratio P / E10 is
at high
level of 33.5 (and P / E5 of 28.0), and a market correction is possible.
Firms of growth stocks all trade
at high valuation
levels, meaning they usually have high price - to -
earnings (P / E) ratios.
The S&P 500 trades today
at just 15.6 times average estimated
earnings — well below the average P / E of 18.6 times
earnings during periods when inflation was
at similarly muted
levels in the past 57 years...