Are current PE ratios and EPS distorted because of all the new money that came back to the US this year?
I'm essentially looking at the big US tech companies who held lots of money overseas because it was too costly to bring back into the US. The new tax reform started in 2018 changed that...For example ee saw companies like Apple ring in billions for overseas money this year. (Disclaimer- I hold Apple, it's just a really good example of this)
What I want to learn is how much did this new money change EPS, how much lower did PE ratios go because of it?
Is it possible that next year we see earnings return to more pre tax cut levels because this was mostly a single year of bringing in billions of money held over seas?
It's a lot to understand and I'm concerned a low PE ratio might be distorted to the low side because of a company bringing in a whole bunch of new money that's been building up outside the US.
I hope that was clear.
I'm not a bear, I'm not shorting anything. I just want to understand this a bit more.
Submitted October 24, 2018 at 11:40AM by Rellim03 https://ift.tt/2R9TzJS
