In December 1999, the equity market's price-to-earnings (P/E) ratio using trailing earnings
Trading on 700 times trailing earnings
, ChiNext listed Qtone Education is symbolic of the bubble like characteristics that have recently emerged in China's domestic equity markets.
For one thing, analysts say that valuations are already high by historic standard, Tadawul is currently trading on more than 20 times the 12-month trailing earnings
78 times 12 months trailing earnings
(as on July 31).
At 21 times trailing earnings
, Xilinx presents great quality, especially considering that its development is harvesting results and clients like China Mobile (CHL) and Cisco (CSCO) can lead to development.
We calculate that this transaction is dilutive to the company's trailing earnings
per share exclusive of synergies, a troubling fact given the low current financing rates.
2), the dispersion of five-year trailing earnings
growth is wider for global small caps (on the right) than for global large caps (on the left).
Certainly compared to trailing earnings
the earnings multiple is robust to say the least, [but with the recent high turnover] the assumption is that DFM numbers will be significantly better going forward.
Apple has rebounded slightly from its lows but still trades at only 13 times trailing earnings
, and we think that it's a good value.
leaving the public markets only a few years after its initial public offering in a take-private transaction, in which it was acquired by noted private equity (PE) investor Blackstone Group, for more than $3 billion [12 times trailing earnings
before interest, taxes, depreciation and amortization (EBITDA)].
The shares are trading at 10 times trailing earnings
, compared with 19 times for companies listed on Dubai's DFM General Index, the best performer among GCC markets this year.
Equity risk premiums (ERP), calculated as the trailing earnings
yield minus the yield on 10Y US Treasury bonds, have in certain major developed markets reached close to historic levels, suggesting that equities are now at attractive levels relative to bonds.