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Reversion-to-Mean

Nov 06 2015

Margins: Reversion Can Be Mean

  • Nov 6, 2015

In Q2, NIPA’s EBIT margin fell to a new four-year low, over one point below the early 2012 cycle peak.

Oct 07 2015

Earnings: What Is Normal?

  • Oct 7, 2015

Corporate profits are notoriously cyclical, and for decades we’ve sought to temper their swings by using a five-year smoothing of S&P 500 EPS in our valuation work.