11 Oct 2022
Market Metrics: EPS Growth
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The current bear market, defined as a fall of 20% or more since recent peak has improved EPS growth forecasts.
EPS (earnings per share) is a measure of a company’s profitability and calculated by dividing a company’s net income by the number of shares outstanding.
That means that we want EPS to grow.
Click for charts.
Yes, the current crash in asset prices could fall further but experiece tells us that quality assets rebound quickly when prices have fallen by 20% and over.
WARNING, this does not constitute Personal Advice. To discuss if this is an appropriate strategy for your given circumstances please do not hesitate to contact us directly.
If you want to take advantage of this asset price crash (or have family, friends, colleagues that want to take advantage) please contact us.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.