Break down U.S. stocks by EPS and PER (P/E). Also considerations for the forecast.

Stock price is the product of EPS and PER.

It is written everywhere. But have you ever seen it demonstrated numerically and in a graph? At least, not in domestic Japanese materials.

My article's feature is to present it in a graph, which is not found anywhere (admittedly a bit of an exaggeration). Visuals over text. That is the motto.

EPS represents the company's actual performance and is determined by economic trends.
PER reflects financial conditions. It tends to be high during easing periods and low during tightening periods.

P=EPS×PER
but representing multiplication in a graph is difficult.
Therefore, to view it in a graph, take the logarithm and
log(p)=log(EPS)+log(PER)
so it becomes an addition.

However, the current S&P 500 EPS is 213.3. PER is 19.37. (S&P 500 is 4,131.93)
and because EPS is overwhelmingly larger, the balance between the two looks off when graphed.
Therefore, when graphing, one should extract the more extreme portion (essentially the upper part).

Thus, when creating an image of stock price, EPS, and PER, it turns out like the following.