Measures: S&P 500 Index

Stock Valuation Measures: S&P 500 Index U.S. : Valuation Measures Historical Averages Valuation 1-year 5-year 10-year 25-year Latest Measure Description ago avg. avg. avg.* P/E Price to Earnings 15.6x 13.8x 13.4x 13.8x 15.5x CAPE Shiller's P/E 25.6 24.4 21.7 22.9 25.1 Div. Yield 1.9% 2.0% 2.0% 2.0% 2.1% Equities PEG Price/Earnings to Growth 1.5 0.8 1.1 1.7 1.4 P/B Price to Book 282.8 262.6 222.2 242.4 292.9 P/CF Price to Cash Flow 11.0 10.3 8.9 9.5 10.6 EY Spread EY Minus Baa Yield 1.7% 1.5% 2.0% 1.2% -0.7%

S&P 500 Index: Forward P/E Ratio S&P 500 vs. Baa Yield 26x 14% 24x S&P 500 Earnings Yield: 12% 22x (Inverse of fwd. P/E) 6.4% 20x 10% 18x Current: 15.6x 8% 16x 14x Average: 15.6x 6% 12x 4% 10x Moody’s Baa Yield: 4.7% 8x 2% '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '90'92'94'96'98'00'02'04'06'08'10'12'14 Source:Source: Standard Standard & Poor & Poor’s, FactSet, s, FactSet, Robert RobertShiller ShillerData,FRB, Data,J.P. FRB,Morgan J.P. Asset MorganManagement. Asset Management.Price to Earnings Priceis to price Earnings divided is by price consensus divided analyst by consensus estimates ofanalyst earnings perestimates share for of the earnings next 12 months.per share Shiller’s for the P/E next uses 12 trailing months. 10-years Shiller’s of inflation P/E uses adjus trailingted earnings 10-years as reported of inflation by companies. adjusted Dividendearnings Yield as reported is calculated by ascompanies. the trailing 12- monthDividend average Yield dividend is calculated divided byas price.the trailing Price/Earnings 12- month to Growth average Ratio dividend is calculat divideded as NTMby price. P/E divided Price/Earnings by NTM earnings to Growth growth Ratio. Price is tocalculated Book Ratio as is NTM the price P/E divided divided by book value per share. Price to Cash Flow is price divided by NTM cash flow. EY Minus Baa Yield is the forward earnings yield (consensus analyst estimates of EPS over the nextby NTM12 months earnings divided growth. by price) Price minus to Book the Moody’s Ratio isBaa the seasoned price divided corporate by bookbond yield.value *P/CF per share. is a 20-year Price avg. to Cash due to Flow cash is flow price data divided availability. by NTM cash flow. EY LatestMinus reflects Baa Yield data asis theof 6/30/14. forward earnings yield (consensus analyst estimates of EPS over the next 12 months divided by price) minus the Moody’s Baa Guideseasoned to the corporateMarkets – U.S.bond Data yield. are *P/CFas of 6/30/14. is a 20-year avg. due to cash flow data availability. Latest reflects data as of 6/30/14. Guide to the Markets – U.S. 7 Data are as of 6/30/14.

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