Capital Markets: Observations & Insights

The Earnings Growth Explosion Is Driving Performance ​ Performance

Total Return = Dividend Yield + EPS Growth +/- P/E Change

MSCI All Country World Index ex-USA

S&P 500

Dividend

EPS Growth*

P/E Change

Dividend

EPS Growth*

P/E Change

25%

20%

20%

15%

15%

10%

10%

5%

5%

0%

EPS Growth Explosion

0%

-5%

EPS Growth Explosion

-5%

-10%

-10%

-15%

-15%

-20%

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

12- Month Total Return:

12- Month Total Return:

9%

14%

22%

13%

2%

17%

14%

-4%

13%

13%

16%

-10%

18%

9%

Source: FactSet as of 3/31/18. *Based on consensus estimates of next 12-month EPS. Actual earnings per share might be materially different than shown. MSCI ACWI ex-US performance based on local currency.

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