UK FTSE All-Share equity valuations GTM –UK | 45 Forward P/E ratio Dividend yield and 10-year Gilt yield x, multiple % yield 31 Dec 2016: Average: 13.8x 14.4x Dividend yield 31 Dec 2016: 4.1% s e i t i u FTSE All-Share Shiller CAPE Eq x, adjusted using trailing 10-year average inflation-adjusted earnings 35 25 30 Nov 2016: 10-year Gilt yield 13.2x 15 Average: 17.0x 31 Dec 2016: 1.2% 5 '83 '87 '91 '95 '99 '03 '07 '11 '15 Source: (Top left) FactSet, FTSE, Tullett Prebon, J.P. Morgan Asset Management. Forward P/E ratio is a bottom-up calculation based on the most recent price data divided by consensus estimates for earnings in the next 12 months and is provided by FactSet Market Aggregates. (Bottom left) FTSE, Goldman Sachs, J.P. Morgan Asset Management. (Right) FactSet, FTSE, J.P. Morgan Asset Management. Guide to the Markets - UK. Data as of 31 December 2016. 45