Sentences with phrase «valuations matter because»
Valuations matter because they are predictive of future returns.
https://www.researchaffiliates.com/ Not exact matches
Finally, it doesn't matter if the low P / E ratio is related to the company or the industry, because a low valuation simply means the market does not believe in sustainable profit growth.
All three companies are planning to sell shares to the public and seeking valuations in excess of $ 1 billion, according to people familiar with the matter, who declined to be identified because the plans are not yet public.
This trend matters to investors because rising valuation levels inflate past performance, reduce potential future performance, and amplify the risk of mean reversion to historical valuations.
Of course, starting valuations always matter and one reason why returns for all equities are so modest is because valuation was sky high at the start of the time period.
As a result, it's the relative valuation between the two choices that matter because it's the relative risk - premium spread that drives much of investors decision making (whether they're conscious of it or not).
I told myself that it didn't matter because valuations probably don't make that big a difference (I was of course careful not to check whether this is actually so or...
Many of us are afraid to write about issue that matters most because it is scary to contemplate how much financial misery we have caused with our tolerance of the widespread promotion of Buy - and - Hold strategies (it is the Buy - and - Hold Model — rooted in the long - discredited belief that markets are efficient — that is responsible for studies that fail to take valuations into consideration when identifying safe withdrawal rates).
But to say that valuations matter is to say that emotions matter because both overvaluation and undervaluation are the product of emotions.
I was told more than once by Appraisal Institute of Canada instructors that the end appraisal document result (the final valuation) did not matter that much, that only the «process» mattered, because that process, if done correctly, would be our best defense in a lawsuit.