Sentences with phrase «different valuation ratios»

Not exact matches

In our 1Q2015 letter, we noted that equity - market valuations were at dangerous levels by three different measures: the CAPE ratio, the Q - ratio, and the Buffett indicator, which are discussed at length in our last letter.

We will cover different types of ratios like valuation ratios, profitability ratios, liquidity ratios, efficiency ratios and debt ratios.

The ratio may not serve as a valid valuation basis when comparing companies from different sectors and industries whereby some companies may record their assets at historical costs and others mark their assets to market.

However, with the ease of access to many different valuation metrics through online sources and services, the value of the PEG ratio has been diminished.

P / E ratios may be the established standard for valuation purposes, but earnings yields are especially useful for comparing potential returns across different instruments.

A number of structural reasons — for example, different accounting conventions — can explain why a particular valuation ratio indicates different relative valuation levels from one market to another.

Furthermore, suggesting that a P / E ratio of 15 represents a rational value reference for most companies does not simultaneously suggest that the market will not assign a different P / E ratio valuation.

Sure, there's lots of companies & sectors which clearly deserve a variety of different valuation approaches, ratios & metrics — but on the other hand, the same operating margin and / or earnings growth rate (for example) surely doesn't deserve a ridiculously higher multiple in one sector vs. another.