Cost of capital
Analysis of the ever-changing price of money
Stock prices rose last fortnight. The S&P 500 index of big American companies climbed 1.9% to 5,248, and earnings per share rose by 50c. At the current price, the S&P 500 offers an 8.8% annual expected return, which is some of the highest returns on offer in over a decade.
ππππ’πππ's discounted cash flow model suggests the S&P 500 is worthΒ $4,818 pβ¦