Sentences with phrase «at valuation metrics»

Look at valuation metrics such as price - to - earnings and price - to - book, and compare those valuations to comparable firms.

Not exact matches

Valuation metrics suggest the market is priced at a high level yet liquidity abounds and its influence is intense.

For example you could say, «Our competitor with similar metrics recently got financed at a $ 20 million pre-money valuation, here is why I think we're better...» Setting terms to the investor by saying something like, «I won't take less than this valuation» is the surest way to turn off a potential investor.

Stocks trade at a high valuation on most metrics including relative to history, relative to interest rates, and relative to inflation.

Looking at ROIC and PEBV help you to identify winners and losers because those metrics cut through the noise and artificial accounting constructs that are at the heart of the valuation methodologies used by many investors.

While a number of simple measures of valuation have also been useful over the years, even metrics such as price - to - peak earnings have been skewed by the unusual profit margins we observed at the 2007 peak, which were about 50 % above the historical norm - reflecting the combination of booming and highly leveraged financial sector profits as well as wide margins in cyclical and commodity - oriented industries.

However, there is one valuation metric, price - to - book («P / B»), that, at first, appears to correlate strongly with ROE.

In the presence of a broad range of reliable valuation metrics uniformly at more than twice their historical norms, coupled with the most severe overvalued, overbought, overbullish, rising - yield syndrome we define, it is instructive how shorter - term action has evolved near those points.

Stocks can see their PE multiples expand and contract in a manner that has almost nothing to do with changes in EPS, which makes looking at these metrics a poor indicator of valuation or future returns.

For instance, as measured by price - to - earnings (P / E) and price - to - book (P / B) valuations metrics, EM stocks continue to trade at a roughly 30 % discount to the broader global equity market (source: MSCI, as of 3/31/2015).

There is some downside, such as the fact that the company is solely dependent on the oil and gas industry, whereas some peers have also diversified into high - margin industrial and specialty products, but shares trade at comparable valuation metrics to peers nonetheless.

We composed a blend of five key valuation metrics — including forward price - to - earnings ratios and price - to - book value — and examined how strong the relationship was between starting valuations — or valuations at the time of purchase — and the variability of subsequent U.S. dollar returns over time.

Other metrics suggest valuations are at least fair.

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.

Use buybacks in combination with valuation metrics to ensure management is repurchasing at a discount.

I totally agree with you and with Buffett; nonetheless there's one question, that came to my mind regarding market valuations: Assuming bonds and interest rates go even lower as they are today, at which level (pe ratio or Shiller pe ratio — or whatever metric you'd like to take) would I call the market of today a bubble?

We have found price - to - sales to be a useful valuation metric within the retail industry, and given Amazon's growth comes largely at the expense of traditional retailers, we believed Amazon should be priced at a higher ratio of sales than its competition.

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).

If this type of option is completely off the table, you're basically just left with a situation where it's your negotiation skills vs the remaining manager, and that (assuming you have little to no regard for anything but making the most money from the deal), becomes much more like a poker game of trying to work out which valuation metrics they will be responsive too, what weaknesses you feel they have and hammering away at them as hard as possible while trying to not show any of your own weaknesses.

We composed a blend of five key valuation metrics — including forward price - to - earnings ratios and price - to - book value — and examined how strong the relationship was between starting valuations — or valuations at the time of purchase — and the variability of subsequent U.S. dollar returns over time.

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.

Colin McWey, CFA: At Heartland we have a traditional value style that focuses on a few key valuation metrics:

Although the 2015 market presents nothing quite so drastic, there are still companies trading at valuations far in excess of what is merited when you take a deep look at the growth projections, balance sheet, and historical valuation metrics.

But to close I will say, look at a full range of valuation and performance metrics when buying a stock, and consider the industry dynamics to understand what matters most given the maturity of the industry.

The article cites comments by columnist Mark Hulbert, who refers to valuation metrics such as P / E, price - book, price - sales and price - dividend ratios as weak indicators of market tops but adds that we ignore them «at our peril, since it's also true that almost all bull market tops in history... Read More

It's trading at a 6.6 x P / E-ratio while the other valuation metrics are as follows:

As I mentioned earlier, the median price - earnings ratios (P / E) and price - sales ratios (P / S) actually surmounted the peaks at the end of the last two bull market cycles — the metrics went beyond the valuation peaks hit in 2000 and in 2007.

The value factor formed on B / P is likely to load on low profitability / junk companies, whereas the aggregate valuation metric may be better at identifying quality and thus may do a better job of predicting the subsequent return.

At the other extreme, valuation metrics need not have any effect on equity returns if those returns all come from price appreciation (capital gains).

However, the shareholder yield strategy benefits from a big bias which is that the portfolio, across almost any valuation metric, is trading at a discount to the overall market.

Value Stocks: Stocks that appear to be trading at a discount to their intrinsic worth, as measured by various different valuation metrics.

Brian Peery: Looking at U.S. equities, many valuation metrics are, on average, currently above historical norms.

Even if they did, and you value the company at an appropriate P / E and / or P / S multiple based on those metrics, I'd be hard pressed to come up with a valuation much higher than today's market price.

Looking at the other major defense contractors it appears that Excelis» valuation metrics compare favorably.

If you prefer some pie - in - the - sky, just look back to peak figures and estimate a potential valuation if that kind of performance can ever be revisited... Vs. the relevant Peak metrics, Richland currently trades at a 1.8 P / E, a 0.4 P / S, and a Dividend Yield of 66 %!

in late June, I thought I'd celebrate with a more in - depth series looking at my portfolio construction (i.e. approach to stock - picking), allocation & valuation metrics.

The Ostriches aren't concerned with valuation metrics or Stein's Law, and let's face it, they've been right to stick their head in the sand — at least so far.

If you add in some quality metrics (eg, to filter out miners over-investing), this tends to throw up situations where metrics like ROE may have been impeded by some temporary setback (which might affect your valuation models negatively), but where the underlying cash flow / quality of earnings remains strong, or small growing companies where cash flow is improving at a faster rate than earnings, and it's just a matter of time before earnings (and therefore valuation) catch up.

Chris Turner has a guest post at Doug Short's Advisor Perspectives called When Warren Buffett Talks... People Listen examining Warren Buffett's favored market valuation metric: Market Value divided by Gross National Product.

In the video I will take a look at Lowe's valuation relative to several important fundamental metrics.

In my mind the dollar is severly at risk to rising inflation, which changes many popular valuation metrics, yet stocks as an asset class should benefit in some ways as they represent claims to real assets whose earnings should grow with inflation.

I totally agree with you and with Buffett; nonetheless there's one question, that came to my mind regarding market valuations: Assuming bonds and interest rates go even lower as they are today, at which level (pe ratio or Shiller pe ratio — or whatever metric you'd like to take) would I call the market of today a bubble?

If the Board were to apply the same valuation metrics to its own stock as it did to the recently completed acquisition of Alliance Systems Inc., they would undoubtedly conclude that at these price levels the Company's shares represent an equal or greater value than Alliance Systems.

One can also look back to peak figures and speculate on a potential valuation if that kind of performance can ever be revisited... Versus the relevant Peak metrics, Richland currently trades at a 2.2 P / E, a 0.5 P / S, and a Dividend Yield of 54 %!

Relying on these metrics, one can quickly arrive at a very similar valuation for Fortress» business.

If the finding that stocks were priced at three times fair value in 2000 were an illusion, the P / E10 level (Shiller's valuation metric) would tell us nothing about where stock prices would be in 10 years or in 20 years.

There are some stocks which may appear cheap because they are trading at a low valuation metrics such as PE, price to book value ratio, cash flow ratio etc..

Long - term challenges in its core business segments along with value destroying management are two reasons for these metrics grinding lower but at a certain point, valuation can become rather compelling.

Set up a valuation metric off of book or sales, since they don't move as much as earnings, and then offer to buy back shares at a multiple of the metric that you think represents intrinsic value.

Table 2 shows valuation metrics for U.S. stocks and bonds at the outset of each of these investment periods.