$S&P Global(SPGI)$ SPGI is a great company. But it's overvalued. Their current EPS (TTM) is about $13.95. This is expected to grow at about 13% CAGR for the foreseeable future so in 5 years, this would give EPS of about $25.70.
The current PE is about 36.6. The average PE for the past 10 years is 26. The average PE for the past 5 years is 31. What multiple will SPGI trade at in the future?
PE 26 gives $668 estimated price target and total CAGR of 6.2%. This will likely under-perform the market. To clarify, PE 26 is still a premium over the broader market.
PE 30 gives $771 estimated price target and total CAGR of 9.3%. This is decent, but will likely underperform the market.
The average return for $S&P 500(.SPX)$ over the past 10 years is 13% CAGR
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