Sentences with phrase «equity valuation multiples»

Combined with earnings growth, we see these returns of capital to shareholders offsetting some valuation challenges: Investors are typically unwilling to bid up equity valuation multiples when rising interest rates and inflation threaten to erode corporate profit margins.

This is why we do not expect equity valuation multiples to revert to historical means.

The price - to - earnings ratio, or P / E ratio, is an equity valuation multiple defined as market price per share divided by annual earnings per share.

Not exact matches

When you purchase a broad swath of equities, say an S&P 500 index fund, the returns you can expect over the next decade or so comprise four building blocks: the starting dividend yield, projected growth in real earnings per share, expected inflation, and the expected change in «valuation» — that is, the expansion or contraction in the price / earnings (P / E) multiple.

The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity.

The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and notable return on equity.

While the overall equity - market volatility could impact sentiment and the valuations that investors are willing to pay, our small - and mid-cap forecasts already assume that multiples will revert to less than the historic median — so our outlook already is fairly conservative.

The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, expanding profit margins, good cash flow from operations and increase in stock price during the past year.

Still, we see the economic and earnings backdrop as positive for equities, with fuller valuations a potential drag, especially in the U.S. Equities in Japan, the only major region to see multiple contraction in 2017, look well posequities, with fuller valuations a potential drag, especially in the U.S. Equities in Japan, the only major region to see multiple contraction in 2017, look well posEquities in Japan, the only major region to see multiple contraction in 2017, look well positioned.

We believe current price - to - earnings multiples are not a reason to avoid U.S. equities, nor are valuations alone a reason to favor other regions.

That's because when stocks have high multiples and tight spreads, there's little upside in holding them (future return has been brought forward to today) but there's lots of downside due to their equity valuations tendency to mean revert.

Damodaran shows in an unpublished study of 550 equity research reports that EM, along with Price / Earnings and Price / Sales, were the most common relative valuation multiples used.

Which is very relevant, as I'd prefer a return on equity (RoE) valuation approach here (vs. most analysts & their focus on earnings / EBITDA multiples), reflecting DHG's deliberate asset - heavy investment policy... which is now far less usual in the sector.

We believe current price - to - earnings multiples are not a reason to avoid U.S. equities, nor are valuations alone a reason to favor other regions.

Because of these issues, the International Private Equity and Venture Capital Valuation Guidelines specifically state that all private equity and venture capital firms should use valuation multiples to value their portfolio companies, noEquity and Venture Capital Valuation Guidelines specifically state that all private equity and venture capital firms should use valuation multiples to value their portfolio companies,Valuation Guidelines specifically state that all private equity and venture capital firms should use valuation multiples to value their portfolio companies, noequity and venture capital firms should use valuation multiples to value their portfolio companies,valuation multiples to value their portfolio companies, not DCF.