CUBE is currently trading
at higher valuation relative to the industry median.
Not exact matches
Stocks trade
at a
high valuation on most metrics including
relative to history,
relative to interest rates, and
relative to inflation.
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.
If
valuations remain
high or increase,
at some point
higher yields may make bonds more attractive
relative to equities.
Knowing how stocks are priced historically
relative to some metric like earnings or cash flows is far more instructive than knowing whether stocks are
at an all time
high or not (we've addressed the predictive utility of stock
valuations in several posts, including here and here).
Clearly, although Yamana Gold's price appears very low
at less than $ 3 per share, its
valuation relative to fundamentals (earnings) is very
high at almost 30 times earnings.
First, note how
high Colgate's stock price was
relative to True Worth ™
valuation at the beginning of calendar year 2000 which caused it to go sideways, not withstanding short bouts of volatility.
In the process of scanning the investment landscape to find value amidst the all time
highs for the indices, I've noticed that a number of big cap tech stocks are priced
at low
valuations relative to their earnings and free cash flow, measured on an absolute basis and
relative to their own historical
valuations.
However, with Welltower trading near all - time
highs and many bond - like stocks trading
at premium
valuation multiples
relative to history, short - term, more risk averse investors need to keep in mind the risk of a short to medium - term correction if rates do begin to rise and cause capital outflows for bond - like stocks.