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Depreciation Subtleties: S&P Earnings Are Vastly Overstated

Source: seekingalpha.com

Artificial IntelligenceCompany FundamentalsCorporate EarningsMarket Technicals & Flows
Depreciation Subtleties: S&P Earnings Are Vastly Overstated

The S&P 500 is valued at 18.8x forward and 26.15x trailing earnings, both above historical norms. The article argues those multiples may be understated because extended depreciation schedules defer AI capex expenses, allegedly inflating current index earnings by approximately $854B.

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