During the third quarter of 2011, combined EPS of the S&P constituents achieved a very strong 18.0% year-overyear growth rate. Earnings were at a record high as the economy continued its recovery. In aggregate, high net income is accompanied by higher levels of free cash flow. Companies have several options for using this excess cash flow – investing in their businesses, paying dividends to shareholders, making acquisitions, and/or repurchasing company stock.
- Regions: United States
- Authors: Greg Harrison (View Blog | View Bio)
- Products: Thomson ONE Investment Management
- Keywords: earnings, S&P 500, valuation
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