Damien Klassen at Nucleus takes a look at the outlook for company earnings, which are likely to drop and then, he argues, struggle to recover over the next 3 to 5 years.
With the earnings of Australia's largest businesses expected to decline ahead the forward PE is now at a fresh all-time high of ~21:
Source: Nucleus Wealth
See here for his article (or click on the image above).
Annual earnings can be volatile, of course, hence some have a preference for using smoothed average indicators.