Equity valuations refer to the process of determining the worth or value of a company's stock or shares. It involves analyzing various factors, such as financial performance, industry trends, and market conditions, to assess the fair price at which a company's equity should be traded.
Full definition
Higher numbers of mature working - age adults (ages 40 — 60) go hand in hand with
higher equity valuation levels and lower yields.
The averages above do hide a significant amount of variation in returns, and the direction
of equity valuations at any given point in time also matters.
With equity valuations stretched, investors should look for ways to protect their capital while still earning a competitive rate of return.
She says she is not worried
about equity valuation levels or inflation and is telling investors to stay invested.
The report focuses on private company
growth equity valuation and financing data, as well as the top investors and companies that participated in transactions throughout 2014 in the B2B software industry.
But
private equity valuations are too high now, and the government doesn't want foreigners in the distressed real estate market.
There are unique factors to that era: The beginning of that period had high interest rates, and
low equity valuations.
The demographic sweet spot for
rising equity valuations is as people begin to accumulate assets, begin to save and invest for their future.
That is why we estimate long - term
equity valuation by combining both types of metrics: relative value and absolute value.
The same rule can apply when adding / buying stock in the depths of a sustained bear market after a
severe equity valuation reduction.
In my opinion, to justify
current equity valuations and experience further gains, stock investors need perpetually low interest rates and a stable bond market.
Highly valued stock markets would create a poor forward - looking equity risk premium while extremely
cheap equity valuations would suggest a positive one.
Lower profits could result which would boost the price - to - earnings ratio and
raise equity valuation concerns.
The current environment of low interest rates and
elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.
I have several models that take the measure
of equity valuations, and they all reach the same conclusion — this market is stretched.
I find that if I haircut my (relatively debt - free)
equity valuation by the value of excess debt, on average it tends to capture an appropriate value for the company.
However, they view
U.S. equity valuations as getting less attractive and see a risk to the markets trajectory if the Trump administration can not enact legislation that supports improved economic growth, Northern Trust finds.
In contrast, the impact of an increase in inflation expectations has a more muted impact
on equity valuations as the impact of the higher cost of capital is offset by higher nominal earnings growth.
Furthermore, he notes that while earnings are decent, there is the hard truth that returns over the last few years have come as much from higher
equity valuations as they have from fundamental growth.
The perception of more
attractive equity valuations outside the United States can be attributed to differences in industry group weightings of regional indexes, our analysis indicates.
Our view for broader and stronger economic growth this year, with only slightly higher interest rates from current levels, is favorable
for equity valuations — especially after the latest decline in equity prices.
Yet the current situation actually creates a double positive for stocks: interest rates are likely to stay lower for longer, which helps
support equity valuations while also providing investment - grade issuers with the ability to borrow cheaply and increase shareholder value.
Investors still cite the low costs of ETFs, but with the S&P 500 trading at a P / E ratio of 21x of higher, and earnings growth remaining persistently low, Narhi and Barr don't
think equity valuations are worth the risk.
But stock performance has actually outpaced gains in earnings, and as a result,
US equity valuations appear stretched as we begin 2018 — for example, the S&P 500's price - earnings ratio is well above longer - term historical averages.
Against the backdrop of current macroeconomic trends — European sovereign debt, the continued monetization of U.S. obligations, the prospect of a hard landing in China — another phenomenon is quietly playing out here in Canada: a continued strengthening of merger - and - acquisition activity in our mining sector, which could boost what are now severely
compressed equity valuations.
As discussed last month, one phenomenon of the post crisis environment is that
equity valuations now have a tendency to co-move with volatility.
After all, the currency fueling much of the deal - making — those companies»
inflated equity valuations — is now depressed, and acquisition targets may prefer to hold out for a higher price.
We wouldn't expect repeat performances in 2014, as our winners and their rivals will wrestle with
lofty equity valuations, policy - related volatility, a still - recovering economy, and the specter of rising rates.
This chart shows the median (because it is less sensitive to outliers) and upper + lower quartiles of emerging
market equity valuations across countries.
Phrases with «equity valuations»