Sentences with phrase «peak earnings level»

In contrast, the much stronger 1974 period started at a price - to - peak earnings multiple of 7 (about 10 times 1972's peak earnings level).

Not exact matches

And while the S&P 500's price compared to earnings expectations is nearly 50 percent above the low levels exhibited in the summer of 2011, valuations have fallen significantly below the July peak.

Since that time, the market's P / E on «forward operating earnings» has generally been substantially lower than the price / peak earnings ratio based on the highest level of trailing net earnings to - date.

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.

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.

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).

The price / peak - earnings multiple is the ratio of the S&P 500 to the highest level of earnings attained to date, even if current earnings on the index have declined below that peak.

For example, since 1950, the S&P 500 has enjoyed total returns averaging 33.18 % annually during periods when the S&P 500 price / peak earnings ratio was below 15 and both 3 - month T - bill yields and 10 - year Treasury yields were below their levels of 6 months earlier.

The first is the very optimistic assumption that in the decade following each starting point, the price / peak earnings multiple will move to a level of 20 (the same level seen in 1929 and other major extremes).

Those figures represent trough - to - peak recoveries from depressed levels, not sustainable earnings trends that are appropriate for valuing stocks over the long - term.

On the subject of valuations, I believe that the peak level of earnings seen in the past market cycle was somewhat high, so I'd agree with Bill Gross at PIMCO in the sense that we're not likely to see that level of earnings as the «norm.»

For women, earnings peak much earlier — around 40 — and then level out.

Of course, none of this is to say a bear market can't occur, but overall, a healthy earnings environment has kept valuations from approaching the levels that marked the peak back in 2000.

And peak earnings make the assumption that index - level profits will regain their previous highs.

Also, and I need to be more patient on this, a recessionary environment is actually «exciting» — if it goes on long enough, investors give up, mark down share prices to v reasonable levels, and seem to completely forget what peak (and possibly future) earnings were — a potential multi-bagger situation.

Thanks to unusually high debt levels and unusually low labor compensation in recent years, the earnings peak in 2007 was based on profit margins that were about 50 % above the historical average, and which have now collapsed.

There is evidence that maltreated children are at greater risk for lifelong health and social problems, including mental illnesses, criminality, chronic diseases, disability1 and poorer quality of life.2 A history of child maltreatment is also associated with lower adult levels of economic well - being across a wide range of metrics, including higher levels of economic inactivity, lower occupational status, lower earnings and lower expected earnings.3 Existing research suggests a ripple effect caused by lower educational achievement, higher levels of truancy and expulsion reducing peak earning capacity by US$ 5000 a year4 or an average lifetime cost of US$ 210012 per person1 when considering productivity losses and costs from healthcare, child welfare, criminal justice and special education.