The question of valuation often comes down to one simple question — are
the current prices for your stocks an accurate representation of their actual value?
Not exact matches
Though the
current stock price isn't something employees are particularly happy about, Zuckerberg says, it's not a limiting factor
for the company's productivity.
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential
for additional forward losses on new and maturing programs; 5) our ability to accommodate, and the cost of accommodating, announced increases in the build rates of certain aircraft; 6) the effect on aircraft demand and build rates of changing customer preferences
for business aircraft, including the effect of global economic conditions on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result of global economic uncertainty or otherwise; 8) the effect of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution of key milestones such as the receipt of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals
for the consummation of our announced acquisition of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future
pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk of nonpayment by such customers; 13) any adverse impact on Boeing's and Airbus» production of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts of terrorism; 14) any adverse impact on the demand
for air travel or our operations from the outbreak of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16) returns on pension plan assets and the impact of future discount rate changes on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase
price for our announced acquisition of Asco on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect of changes in tax law, such as the effect of The Tax Cuts and Jobs Act (the «TCJA») that was enacted on December 22, 2017, and changes to the interpretations of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect of such changes; 21) any reduction in our credit ratings; 22) our dependence on our suppliers, as well as the cost and availability of raw materials and purchased components; 23) our ability to recruit and retain a critical mass of highly - skilled employees and our relationships with the unions representing many of our employees; 24) spending by the U.S. and other governments on defense; 25) the possibility that our cash flows and our credit facility may not be adequate
for our additional capital needs or
for payment of interest on, and principal of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness of any interest rate hedging programs; 28) the effectiveness of our internal control over financial reporting; 29) the outcome or impact of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions
for ourselves and Asco as a result of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks of doing business internationally, including fluctuations in foreign
current exchange rates, impositions of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated
stock repurchase plan, among other things.
He rates the
stock «underperform» — Wall Street speak
for sell — as he believes it is overvalued even at
current depressed
prices, citing the risk that investors» sentiment on the company will sour further if it is accused of fraud or «other impropriety» surfaces.
Short - selling is the practice of borrowing
stock and selling it at the
current market
price but paying
for it later, on the expectation that the
price will fall; it's a way of profiting from a
stock's decline.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues
for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement
for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding
for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and
price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering
prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications
for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all,
for new and
current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its
stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
Value investors and non-value investors alike have long considered the
price earnings ratio, which is also known as the p / e ratio
for short, a useful metric
for evaluating the relative attractiveness of a company's
stock price compared to the
current earnings of a firm.
With virtually identical market capitalization (the
price it would take to buy all shares of a company's outstanding common
stock at the
current market value), what exactly is an investor in each respective firm getting
for his or her money?
They also developed new rules, known as circuit breakers, allowing exchanges to halt trading temporarily in instances of exceptionally large
price declines.12
For example, under
current rules, the New York
Stock Exchange will temporarily halt trading when the S&P 500 stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods of high market volatility.&r
Stock Exchange will temporarily halt trading when the S&P 500
stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods of high market volatility.&r
stock index declines 7 percent, 13 percent, and 20 percent in order to provide investors «the ability to make informed choices during periods of high market volatility.»
Investors looking
for value need to take a holistic approach that measures a company's ability to deliver economic earnings to investors and quantifies the expectations
for future cash flows embedded in its
current stock price.
This chart shows weekly
price bars going back to the beginning of 2007, and thus includes the crash of 2008 and then the
current bull market
for stocks that began in March 2009.
This ratio means the market expects the after - tax profits (NOPAT) of XLF
stocks to increase 40 % from
current levels while KIE
stocks are
priced for expectations of 10 % NOPAT growth from
current levels.
But given the actual market conditions which remain in place, it's difficult to imagine just what investors are hoping
for - and what they think their money is actually buying - when they purchase
stocks at
current prices.
Rather, our concern is that investors are
pricing stocks on the assumption that
current record profits can be used as a «sufficient statistic»
for cash flows that will emerge decades and decades from today.
For example, when we put Amazon (AMZN) in the Danger Zone back in May 2013, we highlighted that the current stock price of $ 267 / share embedded the expectation that the company would grow profits by 25 % compounded annually for 25 yea
For example, when we put Amazon (AMZN) in the Danger Zone back in May 2013, we highlighted that the
current stock price of $ 267 / share embedded the expectation that the company would grow profits by 25 % compounded annually
for 25 yea
for 25 years.
For inclusion in a conservative portfolio, the current price of a stock should not exceed fifteen times its average earnings for the past three yea
For inclusion in a conservative portfolio, the
current price of a
stock should not exceed fifteen times its average earnings
for the past three yea
for the past three years.
In a more neutral scenario, where OCLR's NOPAT margins compress to 17.5 % (from 21 % TTM) and it grows revenue by 5 % annually
for 10 years, the
stock is worth ~ $ 11 / share today — a 65 % premium to the
current stock price.
And like ETFs, minimums
for individual
stocks, CDs (certificates of deposit), and bonds are based on their
current market
prices.
These companies are also undervalued compared to peers, and our DCF model reveals low expectations
for future profit growth baked into the
current stock prices.
This means,
for example, that underwater
stock options aren't included in the diluted EPS calculation, but
stock options that are eligible
for conversion and have a strike
price below the
current market
price are.
Actual results may vary materially from those expressed or implied by forward - looking statements based on a number of factors, including, without limitation: (1) risks related to the consummation of the Merger, including the risks that (a) the Merger may not be consummated within the anticipated time period, or at all, (b) the parties may fail to obtain shareholder approval of the Merger Agreement, (c) the parties may fail to secure the termination or expiration of any waiting period applicable under the HSR Act, (d) other conditions to the consummation of the Merger under the Merger Agreement may not be satisfied, (e) all or part of Arby's financing may not become available, and (f) the significant limitations on remedies contained in the Merger Agreement may limit or entirely prevent BWW from specifically enforcing Arby's obligations under the Merger Agreement or recovering damages
for any breach by Arby's; (2) the effects that any termination of the Merger Agreement may have on BWW or its business, including the risks that (a) BWW's
stock price may decline significantly if the Merger is not completed, (b) the Merger Agreement may be terminated in circumstances requiring BWW to pay Arby's a termination fee of $ 74 million, or (c) the circumstances of the termination, including the possible imposition of a 12 - month tail period during which the termination fee could be payable upon certain subsequent transactions, may have a chilling effect on alternatives to the Merger; (3) the effects that the announcement or pendency of the Merger may have on BWW and its business, including the risks that as a result (a) BWW's business, operating results or
stock price may suffer, (b) BWW's
current plans and operations may be disrupted, (c) BWW's ability to retain or recruit key employees may be adversely affected, (d) BWW's business relationships (including, customers, franchisees and suppliers) may be adversely affected, or (e) BWW's management's or employees» attention may be diverted from other important matters; (4) the effect of limitations that the Merger Agreement places on BWW's ability to operate its business, return capital to shareholders or engage in alternative transactions; (5) the nature, cost and outcome of pending and future litigation and other legal proceedings, including any such proceedings related to the Merger and instituted against BWW and others; (6) the risk that the Merger and related transactions may involve unexpected costs, liabilities or delays; (7) other economic, business, competitive, legal, regulatory, and / or tax factors; and (8) other factors described under the heading «Risk Factors» in Part I, Item 1A of BWW's Annual Report on Form 10 - K
for the fiscal year ended December 25, 2016, as updated or supplemented by subsequent reports that BWW has filed or files with the SEC.
Many (including me) believe the reason that both
stock prices and real estate
prices are currently trading at historically high valuation ratios is tied to the Feds
current «experiment» in holding interest rates at almost zero
for half a decade and running....
For example, you have an equity position of 500 shares at a
current stock price of $ 45.00.
Based on the Dividend Discount Model (DDM) with a 10 % discount rate (the target rate of return), if the company grows the dividend by an average of 7 % per year
for the long term, then the fair
price is over $ 90, compared to the
current stock price of only about $ 83.
If Goodyear can grow NOPAT by just 3 % compounded annually
for the next decade, the
stock is worth $ 39 / share today — a 22 % upside from
current prices.
Other examples are the broad US
stock market, the
stocks of companies involved in social media and / or e-commerce, the market
for junk bonds, and a group of junior mining
stocks where just the hint of a possible discovery has led to spectacular
price gains and market capitalisations that bear no resemblance to
current reality.
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.
If GOOGL's NOPAT margin expands to 23 % (based on Cowen's estimate of tax reform's impact) and the company can grow after - tax profit by 14 % compounded annually
for the next decade, the
stock is worth $ 1,520 / share today, a 41 % upside from the
current price.
Options can help you protect against risk, generate income, increase profits, lower your breakeven point, reverse your strategy without selling your
stock, and even potentially let you set a purchase
price for a
stock below its
current market
price.
For example, the
current stock prices of DFS and ESS imply those companies profits will grow by 300 % or more.
The
current stock price (~ $ 33 / share) implies over about 12 % growth in profits compounded annually
for about 10 years.
It is calculated by dividing the
current market
price of a
stock by the earnings per share estimate
for the future period.
AeroVironment's
current price - to - earnings ratio of 41 is expensive, but both drones and EV chargers are going to be big growth businesses over the next decade, and I think this is a
stock that's worth paying a premium
for.
Determined by dividing
current stock price by common stockholder equity per share (book value), adjusted
for stock splits.
I will be looking
for some more opportunities in the
current state of the market because I would love to buy some
stocks at bargain
prices.
The
current valuation of the S&P 500 is lofty by almost any measure, both
for the aggregate market as well as the median
stock: (1) The P / E ratio; (2) the
current P / E expansion cycle; (3) EV / Sales; (4) EV / EBITDA; (5) Free Cash Flow yield; (6)
Price / Book as well as the ROE and P / B relationship; and compared with the levels of (6) inflation; (7) nominal 10 - year Treasury yields; and (8) real interest rates.
Finally, I use the Gordon Growth Model to calculate a fair value
for the company's
stock price and compare it to the
current market
price.
This forced the professionals that managed these funds to sell off
stocks that they knew were worth substantially more than the
current market
price in order to come up with the cash
for those who wanted out of the fund.
If pre-tax margins fall to 2010 levels (5.7 %) and the company's NOPAT declines by 2 % compounded annually
for the next five years, the
stock is worth $ 75 / share today (99 % above the
current price).
In our view, the underlying fundamentals of global economic and earnings growth remain positive, meaning pullbacks like the
current one may be an opportunity to add
stocks at lower
prices if appropriate
for your situation.
At its
current price, this company is attractive even if it fails to grow, and it makes our Most Attractive
stocks list
for March.
-- the
current price at 12,35 EUR is ~ 1/3 lower than the expired take - over offer from Deutsche Annington 6 weeks ago — although the share will be delisted by the end of the year, I do believe that a squeeze - out under Luxembourg law is very likely within the next 12 - 18 months close to the initial offer
price (~ 50 % upside from
current price)-- the downside is that following November, the
stock will be unlisted and hard to sell and that
for some reason the Acquirer Deutsche Annington will not squeeze out the remaining minorities
If a
stock appears to be cheap based on it's financial statements, there is probably a qualitative reason
for it's
current price level.
At its
current price, this company is attractive even if it fails to grow and makes our Most Attractive
stocks list
for March.
«From a
stock standpoint, while Amazon / Whole Foods will not impact near - term results, it is likely to impact industry trends longer - term, which uncertainty regarding strategic plans
for the combined entity and the response from legacy participants, limiting multiple expansion, and share
price upside, from
current levels,» Astrachan wrote in a note to clients.
The
price of a
stock rises when most buyers are willing to pay more
for a
stock than the
current asking
price.
Making Tomorrow's Millionaires This site, part of an eighth - grade social studies project, includes portfolio templates
for use in the classroom as well as links to sources
for current stock prices.
The fifth criterion Graham and Rea used called
for the
stock price to be below the company's per share net
current asset value NCAV or «net quick» asset value.
Previously, Graham and Rea looked
for companies with
stock prices below their net
current asset value.
And like ETFs, minimums
for individual
stocks, CDs (certificates of deposit), and bonds are based on their
current market
prices.