For one, investors are going to have to get comfortable taking on more risk in their equity portfolios by buying
stocks at higher valuations.
Companies will either find ways to grow by acquisition or get bought out
at a higher valuation by larger, more liquid competitors.
Firms of growth stocks all trade
at high valuation levels, meaning they usually have high price - to - earnings (P / E) ratios.
«With so much money coming into index
funds at high valuations, there's a risk of large redemptions» in the next market downturn.
If one of those gets spun off, it won't
come at a high valuation, particularly if you give it enough capital to maintain its credit ratings.
The key to this strategy is getting 5 people who form the social proof to help you get a bigger angel round
done at a higher valuation by tons of industry insiders and thus offering the social proof you need attract great employees and ultimately venture capital investors.
I agree that
buybacks at a high valuation are likely foolish, but increasing the attractiveness of the stock to those focused on the immediate payback would seem to make acquiring more shares at a good price more difficult.
«They are raising
now at a higher valuation, but if you were to say «here is what the New York and San Francisco markets are really worth in full legal compliance» and then re-run the numbers — however they do it — I don't know that they are still that $ 30 billion company,» Tusk was quoted by CNBC as saying.
SoftBank has committed to invest at least another $ 1 billion in
Uber at a higher valuation of $ 69 billion if the deal goes through.
Other classes of stock have preference and my stock is worth $ 0 even at reasonable ale prices (i.e. only
participates at high valuation liquidity event).
Interestingly, if over the course of the forecast horizon, they go up and then revert back to where they are today, the effect on the return will actually be negative, because there will be no net change in valuation, but some of the ensuing dividends will have been
reinvested at higher valuations than those available today.
Dr West added: «In monetary terms, we found that the benefits for avoided deaths from ozone and PM2.5 were roughly $ 137 per ton
CO2 at high valuation, and $ 45 at low valuation, of which 31 % are from foreign GHG reductions.
In the space of less than 2 years Barnes & Noble has managed to merge businesses, bring in high - profile business
partners at high valuations, buy out those partners at huge losses (to the partners, of course) and then to re-divide the merged businesses.
This supports our belief that stock markets, already
sitting at high valuations, got ahead of themselves early in the quarter and this was followed by a slight pullback at the end March.
While the stock's PE is about right if it in fact had no growth prospects, you believe it should be trading
at a higher valuation since it in fact does have growth prospects.
Said differently, the only way you can expect attractive returns when paying a higher valuation is to expect the market to continue to value your
company at these high valuations long into the future.
Absent one factor, we would not be able to rely on dividend growth to overcome a prolonged
plateau at high valuations (P / E10 above 20).
The private equity buyers would use the free cash flow to repay the bank debt incurred, and five years from now, would IPO
Allstate at a higher valuation.
I could have evaluated an out -
house at a higher valuation than a dog motel due to the lack of any controls over what subjective values I wanted to place on the differences between the so - called comparables.