Sentences with phrase «company valuations tended»

Not exact matches

Service businesses are best valued on revenue and profitability since there are few hard assets, while production assets of companies in manufacturing tend to be substantial drivers of valuation along with revenue and profitability.

In fact, according to a 2014 IBISWorld report on «Business Valuation Firms in the U.S.,» 98 percent of business owners don't know the value of their company; those that do tend to be large companies that have the finances and resources available to them to find out.

So rounds tend to be «range bound» where prices at the top end of the valuation spectrum often being done in boom markets (i.e. 2007, 2011) and for the hottest of companies test the top end of the range, and in bad markets for fund raising (2003, 2008) test the bottom end of the range.

It also suggested that relative valuations and a strong dollar would tend to present greater opportunities for companies to help expand their footprint in new overseas markets.

Grainger's 10 - year average P / E ratio has been 19.0 (see the dark blue box in the right panel), meaning that the market has tended to value it about 27 % higher than the historic valuation of all the companies at 15.0.

Companies that pay in cash tend to be more careful when calculating bids and valuations come closer to target.

The sell - side in these types of situations tends to value companies at peak multiples of trough earnings, and only shifts to the more mid-cycle earnings and valuation we use when there's clear evidence the cycle has turned.

Cardinal's 10 - year average P / E ratio has been 16 instead of 15, meaning that the market has tended to value CAH a little higher than its historic valuation of all the companies.

That brings us to the next potential risk — the risk that the largest companies in the S&P 500 Index also tend to be overvalued when compared with their 10 - year average price / earnings (P / E) ratio.2 According to our research taking these valuation measures into account, 70 % of the 10 largest stocks in the S&P 500 Index were overvalued, as of December 31, 2015 and 56 % of the top 25 stocks are overvalued, the very same ones that make up a third of the index allocation.

And that's why value investing tends to work: companies with cheap valuations improve, and multiples expand.

Companies tend to sell stock when it is advantageous; IPOs happen more frequently when valuations are high, and buybacks happen more frequently when valuations are low.

Value investors tend to focus far too much attention on this potential change in the valuation multiple, and often ignore what's otherwise a company that offers a poor return on capital.

This is radically different from my valuation last year, which now looks plain silly, but distressed companies tend to enjoy (or suffer) such binary outcomes.

And so, accordingly, it tends to attract pretty dissimilar investor constituencies, who may only focus on: i) a handful of the largest caps, regardless of valuation & exposure, ii) stocks which (may) offer cheap / alternative access to overseas growth (a surprisingly large number of Irish companies are UK / Europe / globally focused), iii) stocks offering domestic exposure (notably, economic pure - plays are actually pretty rare), iv) a listed commercial & residential property sector that's only emerged in the past couple of years, and finally (& perhaps most notoriously) v) a (junior) resource stock sector that's been decimated in the last few years.

I tend to think the other aspects of the company's story will provide a much more important tailwind for FIG & its valuation over time.

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.

I find that if I haircut my (relatively debt - free) equity valuation by the value of excess debt, on average it tends to capture an appropriate value for the company.

On the other hand, when investing at sound valuations, utility stocks do tend to produce significantly more cumulative dividend income than the average company.

I tend to find the Price / Sales ratio a far more useful & robust valuation approach — it's less volatile, far less prone to manipulation, and it better approximates how corporate / PE acquirers value companies.

New stock tends to be offered at a time when valuations are high, and companies tend to be taken private when valuations are low.

2) Middle - sized companies tend to do best from a valuation standpoint: the large have nowhere to grow, and the small are always questionable on their viability.

After all, highly valued companies use their stock as currency to buy stocks with lesser valuations, and stocks with low valuations tend to buy back stock or increase dividends.

In our experience, compounders tend to keep compounding, so we're slow to sell unless something in the business or company has fundamentally changed or if the valuation has just become extreme» Peter Keefe