Still, with stocks trading at 18.5x trailing earnings
again on the back of big expectations for the Fed this year, and Fed members setting up reasons for why Jay Powell doesn't need to cut, "good" is sure to still be awkward.
With Boeing stock still trading at a generous valuation of nearly 24 times trailing earnings
, investors would probably be better off putting their money elsewhere for the foreseeable future.
That's a very bad index, because 10 years trailing earnings
includes lousy earnings in 2009, 2010, 2011.
Using this multiplier against trailing earnings
per share of Megaworld at P0.44, we can derive the intrinsic value of the stock at P10.9, which offers a huge 56 percent discount to its current share price.
The analyst also notes that the company's premium valuation of 26.6-times trailing earnings
relative to 15-times peer group average is justified by its ongoing turnaround.
If current trends in loan growth and credit cost continue, I see Bank of America shares rise to 34-35 in the next six months as its valuation is still inexpensive at 13 times trailing earnings
Price to earnings metrics can be significantly under or overstated if forward looking estimates are utilized in lieu of trailing earnings
. For the market as a whole, Warren Buffet has a beautifully simple method of determining how expensive markets are at any given time.
The S&P 500 is trading at 22 times trailing earnings
, near the highest since 2004, according to FactSet.
"GL's share price increased by more than 1,100 per cent from early 2015 to late 2016," Anonymous Equity said adding that in December 2016, when the share price peaked at 68.20 Thai (e1/41.75), the stock was trading at approximately 115 times trailing earnings
and approximately 13.2 times its book value.
The market does however look quite cheap on a historical basis, trading at 15 times trailing earnings
. Return on equity, or profit generated as percentage of shareholder equity, is high at almost 20pc.
The ratio of market capitalization to the 12 months trailing earnings
was used as a proxy for the effect of reporting earnings on stock prices.
The growth of US forward and trailing earnings
has outpaced relative performance so far.