Desconstructing Stock Price - Earnings Multiple Expansion vs Earnings Expansion - Valuation Metrics Broken Pie Chart

Derek Moore responds to market pundits making 2022 predictions where they examine whether stock prices will see moves diven by changes in earnings vs PE multiples expanding. Also covered will be effect share buybacks have on earnings per share EPS. Then he compares Amazon and Apple forward multiples and share counts.
 
PE Ratio
EPS Earnings per share
Calculate Market Cap
Multiple expansion versus earnings expansion
Forward PE vs PE Ratio
S&P 500 2021 price driven by earnings expansion while multiples contracted
Amazon AMZN comparing 2020 earnings to 2005 price along with share counts
Apple has seen a 37% reduction in shares outstanding due to buybacks over 10 years
 
 
Mentioned in this Episode:
 
Contact Derek Moore derek.moore@zegafinancial.com
 
Derek Moore’s Book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547?ref_=nav_signin&