It will be difficult for Aetna to fail to beat expectations as low as these when considering the company's
historical profit growth rate of 12 % compounded annually since 2000.
The stock's current valuation ignores
the historical profit growth and expects profits to immediately and permanently fall.
Not exact matches
While these
growth rates are already below
historical norms, further earnings
growth at a rate higher than revenue
growth would require
profit margins to advance without limit.
Not only does the stock look cheap when analyzed against peers, but the stock's valuation also implies
profit growth will fall well short of
historical trends, as we'll show below.
We'll then compare long - term,
historical business
growth results with a near - term forecast for
profit growth.
That dividend
growth rate seems reasonable, considering the low payout ratio,
historical demonstrated dividend
growth, long - term EPS
growth rate, and forecast for
profit growth moving forward.
And we'll then compare those
historical results to a near - term
profit growth forecast.
Historical earnings per share (EPS)
growth —
Historical growth of a company's
profit allocation to each outstanding share of common stock.