A perspective on global equities’ valuation

Posted on 13. Oct, 2015 by Jean Jacques Ohana in Weekly Focus

October 13, 2015

A premise on global equities’ valuation is that prices should reflect nominal earnings. The definition of earnings is however a subtle problem and many variations have been introduced to overcome the difficulties.
The trailing earnings over the past 12 months seems as an objective definition of earnings but it is very sensitive to booms [...]