DAX Divides Analysts From Investors as Valuations Tumble 54%
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Never before have investors disagreed more with equity analysts about the outlook for profits in Germany.
Companies in the DAX Index will earn 723.43 euros a share next year, up 11 percent from 2011, according to securities industry estimates compiled by Bloomberg. The benchmark gauge for German common equity is trading for 7.2 times forecasts, the lowest multiple on record. Should the ratio revert to its five-year average of 15.6 and stock prices stay the same, profits would fall to 331 euros next year, the data show.