The same applies to stocks (and things like them) trading
at high multiples regardless of what dividends they pay.
Stocks trading at low multiples of their earnings are safer than stocks
at high multiples.
High growth businesses trade
at high multiples of free cash flow.
Kraft Heinz currently trades
at high multiples relative to its peers and the market as a whole.
They are, by their nature, backward - looking, reflecting stocks that have performed well in the past (mega-cap stocks), stocks that trade
at high multiples or stocks that belong to popular industries, rather than stocks with potential opportunity.
Although the stock trades
at high multiples, it still presents a good option for value investors that are looking for long - term stability and growth.
Buyers of Xerox, Polaroid and Schlitz Brewing shares
at high multiples came to regret the decision.
High growth businesses trade
at high multiples of free cash flow.
For example, during the dotcom bubble many internet - based firms traded
at high multiples under the expectation of generating high levels of future growth.
This Vancouver - based mid-cap trades
at a high multiple, but that doesn't worry Beer.
(Media companies» stocks often trade
at higher multiples than those of hardware companies.)
Even industry competitors — like Ford, which trades at a ratio of 6.6, and Toyota, which trades at 9.7 times — trade
at higher multiples, and GM's average price - earnings ratio over the past five years is 12.2.
They were a rapidly growing company that traded
at a high multiple of earnings, and a high ratio to their book value.
Altice USA now trades
at a higher multiple than Charter and Comcast yet has more onerous debt and no clear path to expand.
In other words, the S&P 500 Index tends to trade
at a higher multiple when consumer confidence is high.
Logically, by taking more risk — in paying up to own «growth» stocks
at higher multiples than the market average — one should expect to achieve higher returns.
Japan, on the other hand, looks inexpensive today, as it has typically traded
at a higher multiple than the United States over the 1996 to 2018 period.
Credit Suisse analysts told investors to expect something
at a higher multiple «in pursuit of a growth brand with grape supply» and a target with grape supply.
WSJ - Aug 19 - Match Group is expected to trade
at a higher multiple than the rest of IAC, particularly as it starts monetizing Tinder.
They were a rapidly growing company that traded
at a high multiple of earnings, and a high ratio to their book value.
Also, they trade
at a higher multiple to book value than other BDC's, with a price to book value of 1.7.
Careful investing would not have gotten into Dell
at a high multiple, so that shouldn't represent a source of loss.
Veresen trades
at a high multiple to its per - share cash flow, but it has strong growth prospects and a high dividend yield.
Any asset that provides a secure regulated rate of return over a long period can be valued as a utility which may trade
at higher multiples of revenue than traditional integrated telecoms firms.
With the founder selling out
at a high multiple, and with little news, I'm not sure what's happening besides «hoping it goes back up».»
Not exact matches
Deputies from the Palm Beach County Sheriff's office are guarding the home of the school resource officer who was stationed
at Marjory Stoneman Douglas
High School after his family requested the protection, according to
multiple news reports on Thursday.
If these concerns diminish this year, as I expect, there is room for
higher multiples, especially for the S&P 500 (selling
at 13.1 times forward earnings on Friday) as well as the S&P 400 (15.3) and the S&P 600 (15.9).»
... This means that there are
multiple «active» token numbers for each customer
at any given time,» Hursti said, adding that he recalls a tokenization trial for «black cards» for
high net worth cardholders that resulted in each user having «thousands of active numbers issued to them
at any given time.»
Fines will start
at $ 15 and go as
high as $ 99 for
multiple violations.
She then looks
at a company's return on invested capital; the
higher the ROIC, she says, the
higher multiple the stock deserves.
He also talks of how he repeatedly made
high - risk decisions and was
at the brink of losing everything
multiple times.
«We expect Best Buy to continue to perform
at a
high level across
multiple categories, with appliances likely to be one of the bright spots given market dynamics,» Moody's retail analyst Charlie O'Shea wrote in a research note.
Even AOL's Tim Armstrong, who presided over
multiple rounds of layoffs and humiliating gaffes en route to selling the company to Verizon for $ 4.4 billion last year, comes in
higher,
at 74 percent.
Kostin also outlined three strategies: Secular growth, or companies where sales growth is expected to rise
at least 10 percent for
multiple years without
high valuations; firms that are investing in capital expenditures and research and development; and companies with a strong chance to be acquired.
Its shares trade
at 97 times forward earnings, far
higher than the 16.5 times
multiple on the S&P 500.
A low
multiple means that investors aren't expecting their gains to flow from rapidly rising profits, driven by reinvesting earnings
at high rates of return — Warren Buffett's ideal.
«I would argue that the good companies that trade
at expensive
multiples are better quality companies and deserve a
higher multiple,» she says, pointing to the example of retailer Dollarama Inc. (TSX: DOL), which trades
at 28.8 times current - year earnings — seemingly rich even for its sector — with an enterprise value - to - EBITDA ratio of 19.8.
The stock is trading
at the
high end of its historical range, but its «industry leading earnings and free cash flow growth» make up for that
higher multiple, he said The stock is currently trading
at $ 191 a share, but Hansen said it will hit $ 220 over the next 12 - months.
«It's a very
high multiple — a significantly
higher earnings
multiple than what Priceline trades
at.»
The
highest multiple for any public internet - software company is Xero's,
at 15 times revenue.
For some context, here's a look
at the forward earnings
multiple Parker believes could go
higher.
Software companies usually sell
at larger p / e ratios because they have much
higher growth rates and earn
higher returns on equity, while a textile mill, subject to dismal profit margins and low growth prospects, might trade
at a much smaller
multiple.
Domestic - facing stocks have faster expected sales and earnings growth but trade
at a nearly two point P / E
multiple valuation discount relative to stocks with
high international sales.
The company has strong finances,
high - grade fundamentals, an impressive track record, and is currently trading
at an enticing P / E
multiple.
I do think there is some validity in the argument that stocks deserve a
higher multiple today then they did
at the turn of the 20th century.
However, we believe equities can continue to trade
at significantly
higher multiples than was the case in the 1970s and 1980s.
In other words,
at a certain level
higher bond yields create real competition for stocks, particularly dividend stocks, and put downward pressure on
multiples.
Turning to investment metrics,
multiples at a recent 24x trailing bottom line price to earnings ratio, may be too
high at first glance, according to Seeking Alpha, but huge presence in the payments market deserves such a premium.
Given the risk of early stage investing and venture capital's famously
high mortality rate of portfolio companies, it is imperative that fund managers earn
high return
multiples at these more modest M&A exit values to offset casualties and drive attractive returns.
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