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

30%

25%

25%

20%

20%

15%

15%

10%

10%

5%

5%

0%

EPS Growth Explosion

0%

-5%

EPS Growth Explosion

-5%

-10%

-10%

-15%

-15%

-20%

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

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

12- Month Total Return:

12- Month Total Return:

5%

21%

25%

7%

4%

18%

14%

-8%

19%

18%

10%

-9%

22%

8%

Source: FactSet as of 6/30/18. *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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