Sentences with phrase «at valuations of stocks»

So, when you are looking at relative valuations, always compare like - for - like and look at valuations of stocks that operate in the same economic sector.

Not exact matches

A lot of the results in these charts can be explained by a simple factor: stock valuations at the end of the period were either in a bubble or a bust.

That means that Snap stock will be insanely expensive: At a $ 24 billion valuation, Snap shares will have a price - to - sales ratio of 59, making it far richer than Facebook stock and other social media companies — and likely the most expensive tech IPO ever.

One person familiar with the matter said that a group of investors including SoftBank, Dragoneer Investment Group and General Atlantic would be allowed to buy $ 1 billion to $ 1.25 billion of new Uber shares at a company valuation of $ 69 billion and 14 to 17 % of stock from current investors at a discounted valuation.

That amounts to about 1.2 % of all shares outstanding, which could be worth more than $ 300 million if the company is valued at $ 25 billion (its last reported private valuation) when it goes public — and a lot more than that over time if the stock goes up.

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.

With an aging bull market in the U.S. nearing the end of its seventh year at press time, it's difficult to find safety in cheap stocks; even formerly stodgy dividend payers now trade at dangerously expensive valuations.

Even with a spike in its stock price over today's news, Zynga's market capitalization currently stands at $ 2.44 billion, far below its IPO valuation of $ 7 billion.

So you may say «we are raising $ 1 million and are offering investors preferred stock at a $ 3 million pre-money valuation» along with a brief description of the business but that's effectively it.

Glassman noted that unlike market securities, including stocks, which have an accepted valuation at time of sale, collectibles like artwork or wine may not be eligible for a deduction up to the current market value.

At Lululemon's stock peak in the summer of 2011, the yoga - and running - gear maker commanded a market valuation that was 350 % higher than rival Under Armour.

Given that valuations were already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.

His company, Snap Inc., debuted on the New York Stock Exchange at a valuation of about $ 24 billion.

At a valuation of $ 19 billion, Snap stock would trade at 47 times sales, not quite as sky high as the price - to - sales ratio of 62 that we previously computeAt a valuation of $ 19 billion, Snap stock would trade at 47 times sales, not quite as sky high as the price - to - sales ratio of 62 that we previously computeat 47 times sales, not quite as sky high as the price - to - sales ratio of 62 that we previously computed.

«While the stock at its current valuation is discounting the end of the Yieldco business model, we believe that management has a nice cushion of cash and several options to ride through this market dislocation until cost of raising equity for Yieldcos normalizes,» RBC Capital analysts said.

In answering this question, as my co-author Terry Simpson and I write in the new Market Perspectives paper, «Assessing the Value of Valuations,» it's helpful to look at what today's valuations can tell us about the possible distribution of future U.S. stock markeValuations,» it's helpful to look at what today's valuations can tell us about the possible distribution of future U.S. stock markevaluations can tell us about the possible distribution of future U.S. stock market returns.

When all other things are equal, valuation ratios are a good way to quickly compare the relative value of a stock against others, as well as to look at the relative value of a stock over time.

Understand also that the evidence pointing to steep market risk over the completion of this cycle is quite robust, as the valuation criteria in the overvalued, overbought, overbullish syndromes we now observe would be satisfied even if stocks were significantly lower than they are at present.

One popular criticism of market - cap - weighted stock - market indexes is that they reinforce overvaluation, and if you are worried about occasional oddities in Chinese stocks — stocks that go up by their daily limit every day for weeks after they go public, for instance — then adding those stocks to international indexes at this particular point in the valuation cycle might worry you.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

Given the flaws in Netflix's business and the market's increasing awareness of them, holders of NFLX are taking imprudent risk with the stock at anywhere close to its current valuation.

At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubblAt Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubblat any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubble.

It might sound clever to abandon aspects of a diversified portfolio at times when you're worried about rising interest rates, stock market valuations or geopolitical events.

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.

«At 15x and 11x NTM EPS and FCF, the stock is trading near the upper - end of its recent valuation range and we believe it is tough to expect the multiple to expand,» wrote Lamba of Apple.

When we look at the five FAANG stocks of Facebook Inc. (FB), Apple Inc. (AAPL), Alphabet Inc. (GOOGL), Netflix Inc. (NFLX), and Amazon.com Inc. (AMZN), it's only Amazon and Netflix that trade at very high forward valuations.

Business professors Mai Iskandar - Datta from Wayne State University in Detroit and Yonghong Jia at Governors State University in Chicago recently concluded in a joint paper that «a clawback provision in executive compensation contracts is an effective governance mechanism» and that «shareholders of adopting firms experience statistically significant positive stock - valuation consequences.»

It's expected to raise about $ 10 billion at a market valuation of $ 80 billion or more, according Cate Cadell and Julie Zhu of Reuters, who say it's China's biggest tech I.P.O. since Alibaba — a huge win for the Hong Kong Stock Exchange.

In terms of valuation, Valeant Pharmaceuticals stock currently trades at TTM price to sales value of 0.58 x and price to book value of 1.40 x.

Sellers at these levels may find themselves scrambling to repurchase stock as that occurs, particularly in view of current valuations (even adjusted for the impact of an ongoing recession).

In any event, I'm pleased with the overall behavior of our stock holdings, and I expect that we'll have plenty of opportunity to increase our exposure to market fluctuations at more appropriate valuations.

Accordingly, the Strategic Growth Fund is now back to a fully - hedged investment stance - meaning that the Fund continues to be fully invested in a broadly diversified group of stocks that appear to have some combination of favorable valuation and favorable market action, while at the same time, the Fund carries an offsetting short position of equal size in the S&P 500 and Russell 2000 indices (using option combinations that mimic short futures contracts) intended to mute the impact of broad market fluctuations on the Fund.

3) The Hussman Strategic Growth Fund has gradually shifted from smaller to larger capitalization holdings in recent years, not out of any necessity due to Fund size (at the Fund's current asset level, we could easily populate the Fund with mid-caps if it was optimal to do so), but precisely because large stocks generally carry the best relative valuations.

Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.

Our indicated BEV at each valuation date was allocated to the shares of preferred stock, common stock, warrant and options using the Black - Scholes option - pricing model.

For long - term investors the most important manifestation of that trend is a U.S. stock market trading at elevated valuations that do not discount much in the way of bad news.

The purchase price per share in the tender offer represented an excess to the fair value of the Company's outstanding common stock and Series A through Series F convertible preferred stock, as determined by the Company's most recent valuation of its capital stock at time of the transaction.

In mid-February Russia recapitalized the Moscow Stock Exchange by selling $ 1 billion of shares in an IPO of the exchange — giving it a value of $ 4.2 billion at $ 1.83 a share, second only to the valuation of the London Stock Exchange.

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).

Since the start of 2016, the tech - heavy NASDAQ is down about 15 %, and many stocks that traded at lofty valuations in 2015 have been hit extremely hard.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

He said the following about Sun's peak valuation in 2000 (it was one of the stocks trading at more than ten times sales at the time):

As you can see below, these forward valuation multiples make the stock look attractive compared to the kind of multiples it's traded at in recent years.

In an attempt to cast light on this issue, my colleagues at Plexus Asset Management have updated a previous multi-year comparison of the price - earnings (PE) ratios of the S&P 500 Index (as a measure of stock valuations) and the forward real returns (considering total returns, i.e. capital movements plus dividends).

Frankly, the stock was at that price just a few months ago — after it had already fallen off of a high valuation.

Essentially the company was spending an unsustainable amount of money to grow revenue at levels that would meet the lofty expectations embedded in the stock's valuation.

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.

As I've noted before, the duration of stocks is over 60 years here (at normal historical valuations, the duration has been closer to 25 years).

When an index fund or ETF receives inflows, the fund essentially has no choice but to invest in stocks based on their index allocation at that moment, without any consideration of fundamentals, valuation or anything else.

This isn't to say that stocks can't deliver adequate returns between now and some narrow set of future dates, but to expect that stocks purchased at these levels will deliver attractive long - term returns in general requires the assumption that current valuations will remain elevated into the indefinite future.