Capital Markets: Observations & Insights

Valuation is Relatively In-line with Historical Averages and Cheap to Bonds

Valuation Measure

20-Year Median

Current

P/E

16.6

16.1

P/FCF

18.8

19.0

EV/EBITDA

12.1

12.2

30.0

S&P 500 12-Month NTM P/E

EV/Sales

2.3

2.3

P/B

2.6

2.8

25.0

E/P – BAA Yield

1.3

0.0

20.0

15.0

Average

10.0

5.0

0.0

Jul-91

Jul-02

Jul-13

Oct-88

Oct-99

Oct-10

Apr-94

Apr-05

Apr-16

Jan-86

Jun-92

Jan-97

Jun-03

Jan-08

Jun-14

Mar-95

Feb-96

Mar-06

Feb-07

Dec-86

Nov-87

Sep-89

Aug-90

Dec-97

Nov-98

Sep-00

Aug-01

Dec-08

Nov-09

Sep-11

Aug-12

May-93

May-04

May-15

Source: FactSet. The valuations presented above are based on consensus estimates for future 12-month periods. Actual valuations for such periods might be materially different than those shown.

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