# Prof. Aswath Damodaran's research on equity risk premiums

1 August 24, 2012 CBS ![CBS News logo](/sites/default/files/styles/246w/public/assets/images/con_031726.jpg?itok=XPqKNXWl)>

Excerpt from [CBS](http://www.cbsnews.com/8301-505123_162-57497584/what-will-stocks-earn-in-the-future/) -- "New York University finance professor [Aswath Damodaran](http://www.stern.nyu.edu/faculty/bio/aswath-damodaran) examined the period 1960-2011 and found that if past returns were higher than average, future returns were more likely to be lower, and vice versa. However, Damodaran did find that forward-looking metrics like the earnings-to-price ratio (the inverse of the price-to-earnings ratio) actually had predictive value."

[Read more](http://www.cbsnews.com/8301-505123_162-57497584/what-will-stocks-earn-in-the-future/)