These implied premiums are calculated using the S&P 500.
| Year | Earnings Yield | Dividend Yield | S&P 500 | Earnings | Dividends | Change in Earnings | Change in Dividends | T.Bill Rate | T.Bond Rate | Bond-Bill | Smoothed Growth | Implied Premium (DDM) | Analyst Growth Estimate | Implied Premium (FCFE) |
| 1960 | 5.34% | 3.41% | 58.11 | 3.10 | 1.98 | 0.0266 | 2.76% | 0.10% | 2.45% | |||||
| 1961 | 4.71% | 2.85% | 71.55 | 3.37 | 2.04 | 8.60% | 2.91% | 2.13% | 2.35% | 0.22% | 2.41% | 2.92% | 2.92% | |
| 1962 | 5.81% | 3.40% | 63.1 | 3.67 | 2.15 | 8.79% | 5.21% | 2.73% | 3.85% | 1.12% | 4.05% | 3.56% | 3.56% | |
| 1963 | 5.51% | 3.13% | 75.02 | 4.13 | 2.35 | 12.75% | 9.45% | 3.12% | 4.14% | 1.02% | 4.96% | 3.38% | 3.38% | |
| 1964 | 5.62% | 3.05% | 84.75 | 4.76 | 2.58 | 15.23% | 10.08% | 3.54% | 4.21% | 0.67% | 5.13% | 3.31% | 3.31% | |
| 1965 | 5.73% | 3.06% | 92.43 | 5.30 | 2.83 | 11.20% | 9.42% | 3.93% | 4.65% | 0.72% | 5.46% | 3.32% | 3.32% | |
| 1966 | 6.74% | 3.59% | 80.33 | 5.41 | 2.88 | 2.23% | 1.96% | 4.76% | 4.64% | -0.12% | 4.19% | 3.68% | 3.68% | |
| 1967 | 5.66% | 3.09% | 96.47 | 5.46 | 2.98 | 0.85% | 3.37% | 4.21% | 5.70% | 1.49% | 5.25% | 3.20% | 3.20% | |
| 1968 | 5.51% | 2.93% | 103.86 | 5.72 | 3.04 | 4.81% | 2.09% | 5.21% | 6.16% | 0.95% | 5.32% | 3.00% | 3.00% | |
| 1969 | 6.63% | 3.52% | 92.06 | 6.10 | 3.24 | 6.66% | 6.49% | 6.58% | 7.88% | 1.30% | 7.55% | 3.74% | 3.74% | |
| 1970 | 5.98% | 3.46% | 92.15 | 5.51 | 3.19 | -9.72% | -1.61% | 6.53% | 6.50% | -0.03% | 4.78% | 3.41% | 3.41% | |
| 1971 | 5.46% | 3.10% | 102.09 | 5.57 | 3.16 | 1.15% | -0.74% | 4.39% | 5.89% | 1.50% | 4.57% | 3.09% | 3.09% | |
| 1972 | 5.23% | 2.70% | 118.05 | 6.17 | 3.19 | 10.76% | 0.71% | 3.84% | 6.41% | 2.57% | 5.21% | 2.72% | 2.72% | |
| 1973 | 8.16% | 3.70% | 97.55 | 7.96 | 3.61 | 28.93% | 13.24% | 6.93% | 6.90% | -0.03% | 8.30% | 4.30% | 4.30% | |
| 1974 | 13.64% | 5.43% | 68.56 | 9.35 | 3.72 | 17.48% | 3.14% | 8.00% | 7.40% | -0.60% | 6.42% | 5.59% | 5.59% | |
| 1975 | 8.55% | 4.14% | 90.19 | 7.71 | 3.73 | -17.54% | 0.30% | 5.80% | 7.76% | 1.96% | 5.99% | 4.13% | 4.13% | |
| 1976 | 9.07% | 3.93% | 107.46 | 9.75 | 4.22 | 26.39% | 13.10% | 5.08% | 6.81% | 1.73% | 8.19% | 4.55% | 4.55% | |
| 1977 | 11.43% | 5.11% | 95.1 | 10.87 | 4.86 | 11.53% | 15.07% | 5.12% | 7.78% | 2.66% | 9.52% | 5.92% | 5.92% | |
| 1978 | 12.11% | 5.39% | 96.11 | 11.64 | 5.18 | 7.07% | 6.60% | 7.18% | 9.15% | 1.97% | 8.48% | 5.72% | 5.72% | |
| 1979 | 13.48% | 5.53% | 107.94 | 14.55 | 5.97 | 25.01% | 15.23% | 10.38% | 10.33% | -0.05% | 11.70% | 6.45% | 6.45% | |
| 1980 | 11.04% | 4.74% | 135.76 | 14.99 | 6.44 | 3.01% | 7.81% | 11.24% | 12.43% | 1.19% | 11.01% | 5.03% | 5.03% | |
| 1981 | 12.39% | 5.57% | 122.55 | 15.18 | 6.83 | 1.31% | 6.08% | 14.71% | 13.98% | -0.73% | 11.42% | 5.73% | 5.73% | |
| 1982 | 9.83% | 4.93% | 140.64 | 13.82 | 6.93 | -8.95% | 1.58% | 10.54% | 10.47% | -0.07% | 7.96% | 4.90% | 4.90% | |
| 1983 | 8.06% | 4.32% | 164.93 | 13.29 | 7.12 | -3.84% | 2.76% | 8.80% | 11.80% | 3.00% | 9.09% | 4.31% | 4.31% | |
| 1984 | 10.07% | 4.68% | 167.24 | 16.84 | 7.83 | 26.69% | 9.85% | 9.85% | 11.51% | 1.66% | 11.02% | 5.11% | 5.11% | |
| 1985 | 7.42% | 3.88% | 211.28 | 15.68 | 8.20 | -6.91% | 4.74% | 7.72% | 8.99% | 1.27% | 7.89% | 4.03% | 6.75% | 3.84% |
| 1986 | 5.96% | 3.38% | 242.17 | 14.43 | 8.19 | -7.93% | -0.15% | 6.16% | 7.22% | 1.06% | 5.54% | 3.36% | 6.96% | 3.58% |
| 1987 | 6.49% | 3.71% | 247.08 | 16.04 | 9.17 | 11.10% | 11.99% | 5.47% | 8.86% | 3.39% | 9.66% | 4.18% | 8.58% | 3.99% |
| 1988 | 8.20% | 3.68% | 277.72 | 22.77 | 10.22 | 42.02% | 11.49% | 6.35% | 9.14% | 2.79% | 9.76% | 4.12% | 7.67% | 3.77% |
| 1989 | 6.80% | 3.32% | 353.4 | 24.03 | 11.73 | 5.52% | 14.80% | 8.37% | 7.93% | -0.44% | 9.58% | 3.85% | 7.46% | 3.51% |
| 1990 | 6.58% | 3.74% | 330.22 | 21.73 | 12.35 | -9.58% | 5.26% | 7.81% | 8.07% | 0.26% | 7.39% | 3.92% | 7.19% | 3.89% |
| 1991 | 4.58% | 3.11% | 417.09 | 19.10 | 12.97 | -12.08% | 5.03% | 7.00% | 6.70% | -0.30% | 6.34% | 3.27% | 7.81% | 3.48% |
| 1992 | 4.16% | 2.90% | 435.71 | 18.13 | 12.64 | -5.12% | -2.59% | 5.30% | 6.68% | 1.38% | 4.67% | 2.83% | 9.83% | 3.55% |
| 1993 | 4.25% | 2.72% | 466.45 | 19.82 | 12.69 | 9.37% | 0.41% | 3.50% | 5.79% | 2.29% | 4.73% | 2.74% | 8.00% | 3.17% |
| 1994 | 5.89% | 2.91% | 459.27 | 27.05 | 13.36 | 36.45% | 5.34% | 5.00% | 7.82% | 2.82% | 7.23% | 3.06% | 7.17% | 3.55% |
| 1995 | 5.74% | 2.30% | 615.93 | 35.35 | 14.17 | 30.70% | 6.00% | 3.50% | 5.57% | 2.07% | 5.65% | 2.44% | 6.50% | 3.29% |
| 1996 | 4.83% | 2.01% | 740.74 | 35.78 | 14.89 | 1.20% | 5.10% | 5.00% | 6.41% | 1.41% | 6.13% | 2.11% | 7.92% | 3.20% |
| 1997 | 4.08% | 1.60% | 970.43 | 39.56 | 15.52 | 10.57% | 4.25% | 5.35% | 5.74% | 0.39% | 5.45% | 1.67% | 8.00% | 2.73% |
| 1998 | 3.11% | 1.32% | 1229.23 | 38.23 | 16.20 | -3.35% | 4.37% | 4.33% | 4.65% | 0.32% | 4.60% | 1.38% | 7.20% | 2.26% |
| 1999 | 3.07% | 1.14% | 1469.25 | 45.17 | 16.71 | 18.13% | 3.16% | 5.37% | 6.44% | 1.07% | 5.75% | 1.20% | 12.50% | 2.05% |
| 2000 | 3.94% | 1.23% | 1320.28 | 52.00 | 16.27 | 15.13% | -2.65% | 5.73% | 5.11% | -0.62% | 3.71% | 1.65% | 12.00% | 2.87% |
| 2001 | 3.85% | 1.37% | 1148.09 | 44.23 | 15.74 | -14.94% | -3.24% | 1.80% | 5.05% | 3.25% | 3.56% | 1.73% | 10.30% | 3.62% |
| 2002 | 5.37% | 1.83% | 879.82 | 47.24 | 16.08 | 6.81% | 2.15% | 1.20% | 3.81% | 2.61% | 3.57% | 2.29% | 8.00% | 4.10% |
| 2003 | 4.87% | 1.61% | 1111.91 | 54.15 | 17.88 | 14.63% | 11.19% | 1.00% | 4.25% | 3.25% | 5.35% | 2.12% | 11.00% | 3.69% |
| 2004 | 5.53% | 1.60% | 1211.92 | 67.01 | 19.407 | 23.75% | 8.54% | 2.18% | 4.22% | 2.04% | 4.90% | 2.02% | 8.50% | 3.65% |
| 2005 | 5.47% | 1.79% | 1248.29 | 68.32 | 22.38 | 1.95% | 15.32% | 4.31% | 4.39% | 0.08% | 6.16% | 2.20% | 8.00% | 4.08% |
| 2006 | 5.78% | 1.77% | 1418.3 | 81.96 | 25.05 | 19.96% | 11.93% | 4.88% | 4.70% | -0.18% | 5.93% | 1.97% | 12.50% | 4.16% |
| 2007 | 5.96% | 1.89% | 1468.36 | 87.51 | 27.73 | 6.77% | 10.70% | 3.31% | 4.02% | 0.71% | 5.03% | 2.06% | 5.00% | 4.37% |
Last updated January 5, 2008