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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