Not exact matches
Not
only will this improve the value of the business» earnings (and thus the SDE for
valuation) but it will demonstrate to buyers that the business can be monetized in
multiple channels.
Still, we see the economic and earnings backdrop as positive for equities, with fuller
valuations a potential drag, especially in the U.S. Equities in Japan, the
only major region to see
multiple contraction in 2017, look well positioned.
The sell - side in these types of situations tends to value companies at peak
multiples of trough earnings, and
only shifts to the more mid-cycle earnings and
valuation we use when there's clear evidence the cycle has turned.
That being said, even at today's historically attractive
valuation multiples, investors should likely
only expect to earn a potential total annual return of about 5.9 % to 6.9 % (1.9 % yield plus 4 % to 5 % annual earnings growth) over the next decade, far below the company's historical return rate and the returns offered by most other dividend aristocrats.
That's because at current price levels and
valuation multiples, LANC's long - term annual total return potential is
only about 8.8 % to 10.8 % (1.8 % yield + 7 % to 9 % earnings growth).