Sentences with phrase «equity valuation metrics»

We do not see equity valuation metrics falling back to historical means in an environment where earnings are staging a sustained recovery and long - term rates are low.

As a result, we do not see equity valuation metrics falling back to historical averages.

An equity valuation metric used to compare a company's per share market price to its per share amount of free cash flow.

Not exact matches

If every valuation metric I can find didn't suggest the domestic equity (and real estate) market is historically expensive, I'd try to follow Buffett's advice for his wife's estate and put 90 % of my assets in broad market equity index funds.

One popular valuation metric, the Equity Risk Premium (ERP), can be useful in assessing both relative returns and the right mix of stocks versus bonds.

For instance, as measured by price - to - earnings (P / E) and price - to - book (P / B) valuations metrics, EM stocks continue to trade at a roughly 30 % discount to the broader global equity market (source: MSCI, as of 3/31/2015).

Below are two of the best long run valuation metrics for US equities: Tobin's Q ratio or replacement cost and CAPE or the cyclically adjusted price to earnings or PE ratio.

It is nearly impossible to determine an accurate valuation for cryptocurrencies There are no financial statements or cash flow metrics that investors can analyze using traditional equity and bond valuation techniques.

European equities are not that cheap anymore by a number of valuation metrics; they are trading at an average of about 17 times earnings, which is not a wide undervaluation.1 In my view, the main reason to invest in European equities is the potential for, or the expectation of, a rise in corporate earnings that would be driven by the improving economic environment.

One of the great anomalies of investing: The historical long - term outperformance of certain smart beta or factor - based strategies relative to the broader equity market (think choosing stocks based on their valuations, momentum, low volatility or quality metrics such as profitability).

At the other extreme, valuation metrics need not have any effect on equity returns if those returns all come from price appreciation (capital gains).

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation metrics (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.

Brian Peery: Looking at U.S. equities, many valuation metrics are, on average, currently above historical norms.

The equity portion of the Treasure Trove Twelve portfolio owns the top 12 stocks as ranked by quantitative metrics that reveal an enticing combination of valuation, profitability, and dividend safety.

In the context of your series on valuation metrics and equity expected returns, I'd be interested in your thoughts on our meta - study of market expected returns using various smoothed PE ratios, the Q ratio, mkt cap / GNP and regression to trend measures.

If a share's genuinely «bad» — say, in terms of excessive debt, poor margins, low return on equity, erratic P&L record, etc. — then logically, those sub-par financial metrics will automatically get incorporated into your stock valuation anyway (in suitably quantitative fashion).