Which SPX target will you bank on for 2019? Comment below!
Each of these year end scenarios are based on a DCF valuation model:
A) 2700 fair value, 170 EPS 2019 estimate, 15.88 PE (20 year average forward PE)
4% EPS growth for next 5 years, shrinking to 2% after
B) 2500 fair value, 170 EPS 2019 estimate, 14.7 PE
2% perpetual EPS growth, 9% discount rate
C) 2250 fair value, 170 EPS 2019 estimate, 13.23 PE
0% EPS growth for 5 years, 2% EPS growth after, 9% discount rate
D) 1888 fair value, 170 EPS 2019 estimate, 11 PE
0% EPS perpetual growth, 9% discount rate
Each of these year end scenarios are based on a DCF valuation model:
A) 2700 fair value, 170 EPS 2019 estimate, 15.88 PE (20 year average forward PE)
4% EPS growth for next 5 years, shrinking to 2% after
B) 2500 fair value, 170 EPS 2019 estimate, 14.7 PE
2% perpetual EPS growth, 9% discount rate
C) 2250 fair value, 170 EPS 2019 estimate, 13.23 PE
0% EPS growth for 5 years, 2% EPS growth after, 9% discount rate
D) 1888 fair value, 170 EPS 2019 estimate, 11 PE
0% EPS perpetual growth, 9% discount rate