But I like the growth rate and
the current valuation metrics compared to others in the industry.
Not exact matches
It gives you a
current estimated
valuation of your business, one - click reports, and an interactive optimization tool that lets you compare your company's performance to the competition, test scenarios to see how various
metrics impact your company's value, and set specific targets to help you reach your goals.
Estimating future surplus starts with
current metrics like earnings or cash flow, so using the most recent financial information against the market
valuation is a good indicator of the relative cheapness of a stock.
A
current example is the use of
metrics like «price per eyeball» to justify the
valuations of internet focused companies and divert attention from the fact that on traditional
valuation metric these companies can look very expensive.
As far as MMM goes, you can see exactly how the
current valuation (using a number of
metrics) stacks up against the recent historical averages:
Additionally, a P / E ratio of 15 represents a
valuation metric of a
current earnings yield that also closely correlates with the long - term rate of return (6 % to 8 %) that stocks have delivered when
valuations were aligned with intrinsic value (P / E 15).
The fact it is divided by the
current value also makes it a
valuation metric.
On balance, a
valuation based simply on
current metrics seems neither too harsh nor too optimistic — there are still plenty of higher TV / radio M&A multiples to reference, but I think a 12 P / E and a 2.0 P / S ratio (based on a 21.8 % operating profit margin) are pretty neutral values to apply.
Provide a best - guess estimate on the
current sustainable withdrawal rate based on a some market
valuation metrics
(Note: For the reader's information and convenience, follow this link to a FAST Graphs ™ portfolio review of the complete list of the S&P 500 constituents and key fundamental
metrics presented in order of highest total estimated return to lowest based on
current valuation and estimates of future growth.
One of the most frustrating aspects of the
current market to an old
valuation guy is the complete absence of a focus on fundamental
valuation metrics and apparent lack of understanding of the relationship among leverage, growth, and value.
Likewise, we can see major disconnects between the stock's
current basic
valuation metrics (P / S, P / B, etc.) and their respective recent historical averages.
Next, two
valuation metrics are listed side - by - side, the
current PE ratio followed by the historical normal PE ratio for perspective.
However if at years end stocks are now considered 10 % over valued by those same
metrics and your stock allocation is now at 55 % because of the returns then rather than adjusting back down to 50 % perhaps now you adjust your reasonable allocation percentage down to 45 % to reflect to over-
valuation that is inherent in the
current valuation of the stock market.