Sentences with phrase «return on equity valuation»

Not exact matches

Because when you actually look at the relationship across sectors, and you look at their valuations based on return on equity, or other measures, all sectors seem to be about fairly valued.

Another factor: In January, to the horror of the private equity world, the Ohio Bureau of Workers» Compensation asked a state judge for permission to publish information on the VC firms in which it invests — including company valuations and rates of return.

The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity.

The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity.

Along with the steepest equity valuations in U.S. history outside of 1929 and 2000 (on measures that are actually reliably correlated with subsequent market returns), private and public debt burdens have reached the most extreme levels in history.

A reminder on interest rate front - it's essential to recognize that if one believes depressed interest rates «justify» extremely rich equity valuations, what one is really saying is that depressed interest rates «justify» dismal subsequent returns on stocks.

Looking at valuations overall, we have observed that earnings of many EM companies are gradually improving, in terms of profitability, margins and return on equity, after these variables came under pressure recently.

At this point, obscene equity valuations are already baked in the cake on valuation measures that are reliably correlated with actual subsequent stock market returns.

Last week, the U.S. equity market climbed to the steepest valuation level in history, based on the valuation measures most highly correlated with actual subsequent S&P 500 10 - 12 year total returns, across a century of market cycles.

The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in stock price during the past year.

Going forward, as Japanese companies raise their notoriously low return on equity, Japanese stocks should be supported by relatively cheap valuations and rising dividends.

Return on equity has finally been improving and valuations have been rising.

Historically, the differential in return - on - equity (ROE) explains approximately 35 % of the variation in growth / value relative valuations.

First, the «returns on equities» here are typically taken to be earnings yields, which as we've frequently noted, are affected by cyclical variations in profit margins that make them notoriously poor indicators of long - term prospective returns (see Two Point Three Sigmas Above the Norm and Margins, Multiples and the Iron Law of Valuation).

These valuations might be reasonable on the assumption that short - term interest rates will be kept at zero for more than 30 years, but our impression is that what's actually going on is that investors feel they have «nowhere else to go» and — as in 2000 and 2007 — are speculating without a clear recognition of the dismal long - term returns that are now priced into equities.

Moreover, our impression is that equity valuations are actually only mildly less extreme «when you compare the returns on equities to the returns on safe assets like bonds.»

Until the developed stock markets retreat from record levels of valuation, we expect to have less portfolio exposure to equities going forward and more exposure to event driven situations such as liquidations and reorganizations that are not so dependent on the vicissitudes of the stock market for their investment return.

CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.

We examined valuations by quintile and corresponding data on earnings, return on equity, and revenue growth (Figures 1 and 2).

All stock selection is focused on two key fundamental drivers of long - run equity returns: stock valuations and business quality (as defined by measures of Profitability, Stability and Financial Strength).

At the other extreme, valuation metrics need not have any effect on equity returns if those returns all come from price appreciation (capital gains).

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation metrics (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.

TimesSquare believes that its proprietary fundamental equity research skills, which place particular emphasis on the assessment of management quality, an in - depth understanding of superior business models, and valuation discrepancies, enable the firm to build diversified stock portfolios that will generate superior risk - adjusted returns.

In other words don't count on that cash being returned to shareholders or even invested in passive investments (private or public equity) for the benefit of shareholders; A liquidation valuation really isn't of interest here as Glassbridge is set to be an ongoing business and I can see an operating cash bleed for 3 - 5 years depending on how long it takes the company to attract enough AUM to cover operating (read staffing) costs.

art vs. science, asset allocation, diversification, Event Driven, GARP investing, growth vs. value, IRR, Margin of Safety, Return on Market Equity, stock picking, stock selection, stock valuation

On the contrary, since the 1940's, the ratio of equity market value to GDP has demonstrated a 90 % correlation with subsequent 10 - year total returns on the S&P 500 (see Investment, Speculation, Valuation, and Tinker Bell), and the present level is associated with projected annual total returns on the S&P 500 of just over 3 % annuallOn the contrary, since the 1940's, the ratio of equity market value to GDP has demonstrated a 90 % correlation with subsequent 10 - year total returns on the S&P 500 (see Investment, Speculation, Valuation, and Tinker Bell), and the present level is associated with projected annual total returns on the S&P 500 of just over 3 % annuallon the S&P 500 (see Investment, Speculation, Valuation, and Tinker Bell), and the present level is associated with projected annual total returns on the S&P 500 of just over 3 % annuallon the S&P 500 of just over 3 % annually.

We find that the Shiller - PE is a reliable long - term valuation indicator for developed and emerging markets and we use the indicator to predict real returns on local equity markets over the next five to ten years.

It featured articles on whether the returns on industries as a whole mean - revert or have momentum, whether there is a valuation effect on industry returns, «social responsibility» in investing, and the existence of equity discount rate for the market as a whole.

In the context of your series on valuation metrics and equity expected returns, I'd be interested in your thoughts on our meta - study of market expected returns using various smoothed PE ratios, the Q ratio, mkt cap / GNP and regression to trend measures.

Capital levels constrain business growth, so look at the return on equity to help modify what the proper valuation level should be.

If a share's genuinely «bad» — say, in terms of excessive debt, poor margins, low return on equity, erratic P&L record, etc. — then logically, those sub-par financial metrics will automatically get incorporated into your stock valuation anyway (in suitably quantitative fashion).

Sberbank's valuation is something else... a Return on Equity of 27.1 %, and a 2012 estimated Price / Book of only 1.5, wow!

Look at the growth, the return on equity, the earnings, the balance sheet and the valuation... You have to make money if you by a basket of good undervalued business like this.

Which is very relevant, as I'd prefer a return on equity (RoE) valuation approach here (vs. most analysts & their focus on earnings / EBITDA multiples), reflecting DHG's deliberate asset - heavy investment policy... which is now far less usual in the sector.

Travis has also taught informal workshops on sustainable competitive advantage, business valuation, and the wider applications of behavioral finance and prospect theory, in addition to running a concentrated deep value / special - situations equity portfolio, which has returned 69.53 % since inception in June 2006 relative to the S&P 500's -6.08 %.

The book discusses the basics of valuation through return on equity, how to identify a «good» businesses with sustainable competitive advantages (moats), diversification, how to understand the capital structure, and the implications of the economy for the business analyzed.

This style of investing is subject to the risk that the valuations never improve or that the returns on «value» equity securities are less than returns on other styles of investing or the overall stock market.

However, based on current valuations (using the Shiller CAPE ratio as of May), expected returns on U.S. stocks are now only about 6.1 %, while those for international equities are 7.9 %.

Historically it has been mean reversion of valuation ratios like price to book and price to earnings which have had the greatest effect on long term equity returns.

In 2014, Credit Suisse released persuasive research indicating that companies with greater gender diversity on boards and in management exhibit higher returns on equity, higher valuations, and superior stock price performance.

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