Not exact matches
«Despite entering the latter years of a typical
expansion and high
margins vs. history, we now think the trailing S&P PE should
average 17 vs. 16 until elevated recession risk returns.»
«We still expect a long lasting economic
expansion of moderate growth, which should rival the US record of 10 years with S&P EPS growth
averaging 6 % until the next recession, on 5 % sales growth, flat
margins, 1 % share shrink,» Bianco wrote.
This was partly fueled by an even great
expansion in profit
margins above longer - term
averages than what was realized in the US.
As for earnings, Grafton might be just a merchanting business, but we've actually seen EPS growth
average over 50 % in FYs - 2013 & 2014, and 19 % in FY - 2015 — presuming continued
margin expansion, and noting the revenue growth spurt in the trading update, a 20.0 P / E seems entirely fair at this point: