Global Index Briefing: South Africa MSCI July 5, 20 Dr. Ed Yardeni 5-972-7683 eyardeni@ Joe Abbott 732-497-5306 jabbott@ Please visit our sites at www. blog. thinking outside the box
Table Of Contents Table Of Contents South Africa MSCI Stock Price Index 1 Earnings 2 Revenues & Margins 3 Valuation 4 July 5, 20 / Global Index Briefing: South Africa MSCI www.
Stock Price Index 1925 25 1325 Figure 1. SOUTH AFRICA MSCI STOCK PRICE INDEX (ratio scale) 7/5 1925 25 1325 25 25 725 725 425 425 5 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019 200-day moving average. Source: MSCI. 5 9 Figure 2. SOUTH AFRICA MSCI, FORWARD EARNINGS, & VALUATION South Africa MSCI Index 07/05/ Blue Angels Implied Price Index* 0/ x x 9 6 x8 6 3 3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019 * Implied price index calculated using forward earnings times forward P/Es. Monthly through December 2005, weekly thereafter. Source: MSCI and Thomson Reuters I/B/E/S. Page 1 / July 5, 20 / Global Index Briefing: South Africa MSCI www.
Earnings 130 1 Figure 3. SOUTH AFRICA MSCI EARNINGS PER SHARE (analysts average forecasts, ratio scale) 19 130 1 70 70 50 50 30 30 Consensus Forecasts Annual estimates Forward earnings* 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019 * Time-weighted average of consensus estimates for current year and next year. Monthly through December 2005, then weekly. Figure 4. SOUTH AFRICA MSCI INDEX NET EARNINGS REVISIONS* 5 5 0 0-5 -5 - Jun - - - -20-25 NERI Apr -4.53 May -5.44 Jun -8.89 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019-20 -25 * Three-month moving average of the number of forward earnings estimates up less number of estimates down, expressed as a percentage of the total number of forward earnings estimates. Page 2 / July 5, 20 / Global Index Briefing: South Africa MSCI www.
975 875 775 Figure 5. SOUTH AFRICA MSCI REVENUES PER SHARE (analysts average forecasts, ratio scale) Revenues & Margins 19 975 875 775 675 675 575 575 475 475 375 275 Consensus Forecasts Annual estimates Forward revenues* 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019 375 275 * Time-weighted average of consensus estimates for current year and next year. Monthly through December 2005, then weekly. Figure 6. SOUTH AFRICA MSCI PROFIT MARGIN (using analysts average earnings and revenues forecasts) 13 19 13 11 9 Consensus Forecasts Annual estimates Forward profit margin* (13.7) 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019 11 9 * Time-weighted average of the consensus estimates for current year and next year. Monthly through December 2005, weekly thereafter. Page 3 / July 5, 20 / Global Index Briefing: South Africa MSCI www.
Figure 7. SOUTH AFRICA MSCI VALUATION MULTIPLE* Valuation Forward P/E (.3) 8 8 6 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019 6 * Price divided by forward consensus expected earnings per share. Monthly data through December 2005, weekly thereafter. 1.1 Figure 8. SOUTH AFRICA MSCI RELATIVE VALUATION* 1.1 1.0 1.0.9 Relative P/E (0.98).9.8.8.7.7.6.6.5.5.4.4.3 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20 2011 20 2013 20 20 20 20 20 2019.3 * Forward P/E of index relative to All Country World MSCI forward P/E. Monthly data through December 2005, weekly thereafter. Page 4 / July 5, 20 / Global Index Briefing: South Africa MSCI www.
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