FactSet Earnings Estimates and Ratio Review – Part II in Market Valuation Series

John Butters our friend at FactSet, (a treasure of information resource) released a 37 page report in timely fashion for our Valuation Series. We are especially fond of Butters who takes the time to personally email us the “ok” to reproduce portions of his report…thanks again John!

Recall our first in Valuation Series here, where we reviewed the Buffett back of the Napkin Valuation of GDP to S&P 500 Market Capitalization…. While maybe not flashing Bright Red, it was in never seen before high valuation territory…

FactSet Valuation Analysis

Here we are again showing a likely never before seen high chart value … Flashing bright Yellow or maybe Light Red. Way up high as printed is overvalued…

Unlike the prior charts, this one is GREAT going up…

This Chart is the Q1 2021 Earnings Expectations. In September of 2020 expectations were for a negative yes -13% year over year earnings… today barely positive, but positive!

Now here is the REAL GOOD news, Q 1 2020 was mostly unscathed by the lockdowns… meaning this is a very aggressive comparable to a more normal year, also meaning the following quarters will likely print huge positive growth numbers due to easier comparisons…

With a little luck, maybe we can grow into our larger than fitting/high valuation clothes over the year!

Lemonade out of Lemons … MAYBE, but bad things do not always have to happen…

Lots of risk, lot’s of things that could go bad, but again they do not HAVE to!

No time to swing for the fences — We NEVER do!

Have a Great “FactSet High Valuations but a Safe Way Out” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.



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