FactSet Report Shows S&P 500 Earnings Growth Driving ETF Valuation
1 report, 1 independent
Updated Sep 22
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What happened
FactSet's September 18 weekly earnings report showed that expected earnings for S&P 500 companies over the next 12 months have climbed 8.8% since June 30. While the S&P 500 finished below its record close, profit expectations have been the primary driver of the index's movement.
From fool.com
Why it matters
The increase in expected earnings has lowered the valuation multiple for index funds. A buyer at the end of June paid 20.4 times expected earnings, while a buyer currently pays closer to 19 times expected earnings. FactSet also estimates third-quarter earnings growth for the S&P 500 at 28.9%.
FactSet provides information used to track the performance of various Exchange Traded Funds.
From fool.com