Sentences with phrase «at average valuations»

Mutual funds are destined for poor results because they own 100 stocks of average companies at average valuations.

We then looked at average valuations, capital raised, and value (the difference between capital raised and valuation at the time of IPO / M & A) for companies led by founders versus professional managers.

Softbank invested in Uber in December ’17 at an average valuation of about $ 48 billion.

The basic idea behind the two pieces is this: sure, we're at average valuation levels now, but in a real bear market values can get cut in half from here.

Not exact matches

There's no question that it today's valuation — if you look at the S&P overall, forward PE's are about 18.5, the long - term average is more like 15.5 — you could say that it looks a little bit rich.

During that earlier period, American business earned an average of 11 percent or so on equity capital employed and stocks, in aggregate, sold at valuations far above that equity capital (book value), averaging over 150 cents on the dollar.

But it won't happen for a while for one reason: On average the folks who pocketed those nearly double - digit gains in past decades were buying at far lower prices than the big valuations prevailing today.

«Nowadays,» say the two experts, «valuations are much more sober: the average NASDAQ - listed company today trades at around 21x PE, and even high - flying companies such as Apple, the most valuable company ever, trades at only 15x PE.»

If you are raising an A round, and this would be an average Israeli [deal], of $ 3 million funding at a $ 6 million pre-money valuation, and you are putting aside a pool of options at 10 %, you already gave up 33 % of the company.

The latest valuations — according to Moodys / REAL Commercial Property Price Index — show prices for U.S. retail, industrial, apartment and office buildings have fallen on average by half from their mid-2007 high and are back at 2001 levels.

The averages above do hide a significant amount of variation in returns, and the direction of equity valuations at any given point in time also matters.

At present, the valuation measures we find most strongly correlated with actual subsequent S&P 500 total returns suggest zero total returns for the S&P 500 over the coming 10 years, and total returns averaging only about 1 % annually over the coming 12 - year period.

In contrast, most major markets outside the United States are trading at valuations at or below their historical average, as illustrated in the Chart of the Week below:

The favorable market performance associated with many historical economic expansions is fully accounted for by 1) favorable post-recession valuations, with the S&P 500 averaging less than 9 times prior peak earnings at the recession low, expanding to just over 11 times peak earnings in the first year of the bull market, and 2) favorable trend uniformity, which typically emerges almost immediately in the form of a powerful breadth thrust off of a bear market low, and is confirmed within a few weeks by much broader trend uniformity.

When an investment horizon begins at depressed market valuations and ends at elevated market valuations, the total returns of investors over that horizon are always glorious (for example, the total return of the S&P 500 averaged nearly 20 % annually during the 18 - year period between the 1982 low and the 2000 peak).

A decline much more than 2 % below that average could provoke coordinated exit attempts by trend - followers, at valuations nowhere near the point where value - conscious investors would be eager to absorb those shares.»

But with long - term bonds and non-cyclical equity sectors trading at historically extreme valuations while cyclical sectors trade at valuations below their long - term average, we think that risk aversion is creating numerous investment opportunities for investors willing to build a portfolio of more economically sensitive companies.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

One can relate this directly to a 10 - year prospective return by recalling that historical tendency for market cycles to establish normal prospective returns — if even briefly as in 2009 — at their troughs (and it's typical for troughs to reach below average valuations and much higher prospective returns than the 10 % historical norm).

It turns out that at 14.9, the 10 - year average is nearly identical to the current valuation of 14.8.

«The Shanghai Composite in aggregate is now trading back well below average global equity valuations at the headline index level,» says Jonathan Garner, Morgan Stanley's Chief Asia and Emerging Market Equity Strategist.

Grainger's 10 - year average P / E ratio has been 19.0 (see the dark blue box in the right panel), meaning that the market has tended to value it about 27 % higher than the historic valuation of all the companies at 15.0.

Given that most companies today are trading at valuations well above their ten - year averages (i.e. investors usually pay $ 18 - $ 22 for each dollar of profit that Hershey generates, but today they are willing to pay $ 26 - $ 29).

The average member of this group should grow by about 11 %, far lower than the most expensive stocks» 20 % growth rate, but at less than half the valuation.

Full valuations — Canadian and U.S. equity markets are trading at above - average valuations, while strong performance has also lifted overseas valuations.

Additionally, sky - high valuations, which in the U.K. now stand at around six times average earnings and are closer to double that ratio in the capital, have contributed to the malaise.

European equities are not that cheap anymore by a number of valuation metrics; they are trading at an average of about 17 times earnings, which is not a wide undervaluation.1 In my view, the main reason to invest in European equities is the potential for, or the expectation of, a rise in corporate earnings that would be driven by the improving economic environment.

At the same time, we do have sufficient evidence to indicate that market risk is not worth taking on the basis of average outcomes from the combination of valuation and market action we currently observe.»

Over the past twelve months, we have added 14 names to the portfolio, all of which, in our view, can be described as well - managed, high - quality businesses selling at average or below - average valuation levels.

For me, it's hard to get excited about stocks at these valuations when I can add to my rental portfolio and earn 15 - 20 % cash on cash returns quite easily before accounting for any appreciation and loan paydown... of course you have the headaches of managing tenants and maintenance issues, but even if you pay a 10 % management fee, the numbers are still a lot better than average stock returns.

1) Overpaid players on high salaries 2) Leave selling players at the very end of transfer window 3) Club not knowing what their priorities are during a transfer window by planning beforehand 4) Being too greedy for wanting higher valuation price on average players or selling players bellow their market rate 5) Letting players hold the club to ransom by giving them game time just to make them happy 6) Using the lack of players leaving as an excuse for not signing more players

If passed, the 20 - year bond would cost homeowners of an average primary residence valued at $ 639,000 a total of $ 123 a year, or roughly $ 19.25 per $ 100,000 of assessed valuation.

In contrast, most major markets outside the United States are trading at valuations at or below their historical average, as illustrated in the Chart of the Week below:

By pretty much all measures, it offers access to higher growth rates at lower valuations than the average European stock fund does.

The second FASTGraphs valuation looks at «fair value» being defined by the stock's long - term average P / FFO ratio.

Out of 9,194 stocks tracked by Standard & Poor's Compustat research service, 3,518 are now trading at less than eight times their earnings over the past year — or at levels less than half the long - term average valuation of the stock market as a whole.

Stand - alone bear markets have begun at higher valuations, on average.

It is drawn at a value of P / E = 13.8, because that is Merck's 5 - year average historical valuation.

But given today's low interest rates (recently about 2.3 % for 10 - year Treasuries) and relatively rich stock valuations (Yale finance professor Robert Shiller's cyclically adjusted P / E ratio for the stock market recently stood at 29.2 vs. an average of 16.7 since 1900), it would seem to strain credulity to expect anything close to the annualized returns of close to the annualized return of 10 % for stocks and 5 % for bonds over the past 90 years or so, let alone the dizzying gains the market has generated from its post-financial crisis lows.

While reading through the transcripts of some of Greenblatt's classes at Columbia, I noticed he mentioned a similar point about being average at valuation work (not really better than anyone else in the business), but being above average at putting the information in context, remembering the big picture, and being able to pinpoint what factors really matter to an investment.

An average bear market within a «secular» bear market period (a period generally about 17 - 18 years, where valuations begin at rich levels and achieve progressively lower levels over the course of 3 - 4 separate bull - bear cycles) is about 39 %, and wipes out about 80 % of the preceding bull market advance.

Starting at today's valuations, it takes about 20 years before a stock market investor can be reasonably confident (80 % +) of achieving a gain (after inflation) even though he uses dollar cost averaging.

Just about every valuation metric you can look at is currently well below the five - year average, which is somewhat warranted in light of slowing growth.

So 9 % is a very conservative planning assumption at current valuations, is beneath the TSE / TSX index's long - term average return, and an acceleration in inflation is not required to achieve such return.

Most are now vastly more expensive, trading at spreads or valuations considerably richer than historical averages.

«Even with small caps lagging, the valuations in our view are still well above long - term averages,» says Kate Warne, investment strategist at Edward Jones in St. Louis.

I have located the flaw in Dollar Cost Averaging at today's valuations: human frustration.

So, if Markel's ROE averages 13 % over time, then at 1.3 times book (roughly the current valuation), Markel currently has a P / E ratio of just 10.

Almost all of the factors and smart beta strategies exhibit a negative relationship between starting valuation and subsequent performance whether we use the aggregate measure or P / B to define relative valuation.9 Out of 192 tests shown here, not a single test has the «wrong» sign: in every case, the cheaper the factor or strategy gets, relative to its historical average, the more likely it is to deliver positive performance.10 For most factors and strategies (two - thirds of the 192 tests) the relationship holds with statistical significance for horizons ranging from one month to five years and using both valuation measures (44 % of these results are significant at the 1 % level).

Long - term investors understand that the most reliable way to generate above - average returns is to be a long - term investor in above - average businesses purchased at sound valuation.