Sentences with phrase «average earnings multiple»

I guess the lesson for me is that if I'm buying a spread of cigar butt companies — a la Walter Schloss or Ben Graham — I'm not willing to pay a higher average earnings multiple for a basket of high ROIC companies.

Because of mean reversion, I'd rather ignore ROIC — or give it minimal attention — if it allows me to buy a group of stocks with a lower average earnings multiple.

Bottom line: Investors can access a portfolio of 25 top P&C insurance companies trading at below average earnings multiples with the PowerShares KBW Property & Casualty Insurance Portfolio at a cost of just.35 % per year.

Not exact matches

Based on 2016 earnings of $ 16.2 billion, it's selling at a price - to - earnings multiple of just 15, well below the market average in the mid-20s.

Our 2013 year - end target of 1600 implies a 10 % price return, where most of the appreciation can be attributed to earnings growth of 7 % next year, along with modest multiple expansion from 14.2 x to 14.7 x on trailing earnings, still below an average PE of 16x.

In general, so - called value stocks — often defined as those trading at earnings multiples below the market average or their own historical norms — have tricked a lot of investors in the most recent phase of the current bull market, which has worn on nearly seven and a half years.

The S&P 500's forward price - to - earnings ratio has slid from 18.6 on Jan. 26 to 17 on Feb. 5 to 16.2 entering this week — and 16.2 also happens to be exactly the five - year average multiple.

The amounts are expressed as percentages of pre-retirement earnings; earnings are expressed as fractions or multiples of average wages and salaries (i.e. replacement rates); and the YMPE under the C / QPP serves as a proxy for average wages and salaries.

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.

The green, orange, yellow, and red lines represent the projected total returns for the S&P 500 assuming terminal valuation multiples of 20, 14 (average), 11 (median) and 7 times normalized earnings.

Financial transaction service providers globally trade at an average price to earnings multiple of about 24 times, data compiled by Bloomberg show.

«High multiple stocks can become average multiple stocks at the drop of a penny in expected earnings.

This leaves roughly 1.4 % of historical long - term returns which can be attributed to past expansion in the Price / Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster than the 5.7 % average rate of earnings Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster than the 5.7 % average rate of earnings earnings growth).

The share price has fallen considerably from when we eliminated the position in the second quarter of 2014 when the business was valued at over 15x 2014 earnings, and we believe the business is now attractively valued at a below - average multiple of 11x expected 2015 earnings.

Bill's main point here is that with the exception of the 1973 - 1974 bear market, the downturns that ended at single - digit price - to - peak earnings multiples also started at below - average multiples.

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.

Essentially, Selsick examined the Shiller P / E (the S&P 500 divided by the 10 - year average of inflation - adjusted earnings), and showed that the multiple is even better correlated with actual subsequent S&P 500 total returns using 16 - year smoothing and a 16 - year investment horizon.

Trailing earnings for the S&P 500 ended 2017 at nearly 22x, significantly above the 10 - year average multiple of 15.7 x. Stocks have been expensive for some time, and while earnings have been robust of late, price advances have more than kept pace.

The «normal cases» are future price / peak earnings multiples of 14 (the historical average) and 11 (the historical median).

Assume also that by 2010, the price / peak earnings multiple simply touches its historical average of 14 (forget that the typical multiple has been less than 10 when earnings have been at the top of that peak - to - peak growth channel - let's just assume the multiple touches 14).

Technology and financial stocks have led the stock indexes higher, pushing the Dow Jones industrial average to yet another record high, trading at a multiple of 19.9 to TTM earnings.

The last time bearish sentiment was below 20 %, at a 4 - year market high and a Shiller P / E above 18 (S&P 500 divided by the 10 - year average of inflation - adjusted earnings — the present multiple is 23) was for two weeks in May 2007 with the S&P 500 about 1525.

Be wary anytime a stock trades for a price - earnings multiple that is many times the average for its competitors.

For above - average volatility (the two bottom plots) the typical valuation multiples are between about 10 times and 15 times the 10 - year average of trailing real earnings.

The risks are material if this bear market was to end at the average price - to - peak earnings multiple of past recessionary troughs.

Applying those multiples to today's real 10 - year averaged earnings ($ 55) would imply an S&P 500 Index of 825, 715, 550, and 385, respectively.

Most analysts who are forecasting stock market returns in line with historical averages are not arguing for higher multiples, but faster earnings growth.

If you look at periods where the price / peak earnings multiple was 16 or higher on the S&P 500, the final rate hike of a tightening cycle was actually associated with losses on an annualized total return basis, averaging -7.18 % over the following 6 months, -9.94 % over the following 12 months, and -5.87 % over the following 18 months.

Forget all the mumbo jumbo, but basically this measurement shows that the U.S. market at the end of last year was at a twenty - six price - to - earnings multiple, well above the long - run average.

It sports the highest average three - year earnings - per - share growth rate at 77 % and has a modest book value multiple of 0.9.

Eaton trades at a forward price - to - earnings multiple of 14.2 and has a dividend yield of 3.7 %, which is higher than its five - year average dividend yield of 3.1 %.

Over the long term, finance theory says that such stocks should theoretically earn less than the risk - free interest rate, and sell at above - average price / earnings multiples because they provide «insurance benefits» for a portfolio.

To be clear, many average companies with significantly lesser earnings power are trading at earnings multiples approaching 2 to 3 times greater than many above - average companies are trading at.

Specifically, the average P / E on the S&P 500 (based on trailing net earnings) was only 14 (with a median closer to 12), while the average dividend yield was 3.75 % and the average price / revenue multiple was just 0.90.

But with the board now conceding cash generation is more important than earnings growth / guidance, this gap should close, so a 1.0 P / S multiple (based on an average 10.8 % margin of $ 425 million) seems fair at this point.

a $ 2.7 billion EC fine), we arrive at an operating profit run - rate of $ 36 billion — at an average 18 % tax rate, that implies a $ 29 billion net earnings run - rate, for an ex-cash 21.9 earnings multiple.

Recognising the current & potential growth trajectory here, we should also factor / average an appropriate earnings multiple into our intrinsic value estimate: With earnings up 21 % & 70 % in the last two years, just about any multiple's justified... again, to be prudent, we'll limit ourselves to a 20.0 Price / Earnings ratio, based on a 123 cents adjusted diluted EPS H2 - 2015 runearnings multiple into our intrinsic value estimate: With earnings up 21 % & 70 % in the last two years, just about any multiple's justified... again, to be prudent, we'll limit ourselves to a 20.0 Price / Earnings ratio, based on a 123 cents adjusted diluted EPS H2 - 2015 runearnings up 21 % & 70 % in the last two years, just about any multiple's justified... again, to be prudent, we'll limit ourselves to a 20.0 Price / Earnings ratio, based on a 123 cents adjusted diluted EPS H2 - 2015 runEarnings ratio, based on a 123 cents adjusted diluted EPS H2 - 2015 run - rate:

This leaves roughly 1.4 % of historical long - term returns which can be attributed to past expansion in the Price / Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster than the 5.7 % average rate of earnings Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster than the 5.7 % average rate of earnings earnings growth).

The above - average returns many countries experienced in the second half of last century resulted from the willingness of investors to pay increasingly higher multiples for a stream of earnings or dividends.

Shares of Caterpillar trade for 11.7 times trailing earnings of $ 6.20 per share, well under the five year average multiple of 18.2 times earnings.

A 50 % decline in the S&P 500 Index would put the P / E multiple at 14, still above the historical average P / E that has been applied to record earnings.

As an example, it is the «safe», high - income Utilities sector that today sports a historically high multiple, while the «risky» Technology sector has an earnings multiple below its long - term average.

After the selloff on the share price, Monsanto is trading at just 16.1 times trailing earnings and well below its five - year average multiple of 24.9 times earnings.

Historically, the market multiple forward multiple for the S&P has averaged about 15 times forward earnings today.

If you look at trailing 10 - year earnings over the past 100 years, the average P / E multiple is about 18.