Sentences with phrase «expectations on valuation»

Not exact matches

«A lot of investors, up until recently, have been buying on the expectation that valuations canjust keep going up.»

-- The bank was upgraded to «outperform» from «underperform» at Macquarie based on low expectations and an attractive valuation.

It is not difficult to predict profit margins will fall under regulation and that current market cap valuations are predicated on unrealistic expectations.

Daily - deal pioneer Groupon and social - gaming firm Zynga, which both achieved big valuations based on little more than high expectations, are tanking.

Other companies facing similar questions about whether they can make good on early investor expectations — and lofty private - market valuations — include online storage service Dropbox Inc., note - taking company Evernote Corp., music - streaming service Deezer SA and blood - testing company Theranos Inc., said Anand Sanwal, chief executive officer of CB Insights, a firm that tracks startup investing.

2) Valuation: based on the expectations embedded in stock prices.

Because our model focuses on quantifying the market's expectations for the future financial performance of a company as embedded in the stock price, we need a more dynamic DCF model than the traditional models that force the valuation of every stock into a 5 or 10 - year forecast horizon.

Of course, a lot of the future performance in tech depends on where current valuations and expectations lie.

B) Valuation: based on the expectations embedded in stock prices.

These financial uncertainties are likely to retard consumer sentiment in the short run until market expectations both on the future of oil prices and the housing market valuations stabilize.

Our monthly market valuation updates have long had the same conclusion: US stock indexes are significantly overvalued, which suggests cautious expectations on investment returns.

Disappointing earnings In one way or another, the majority of 3D printing stocks disappointed on Wall Street expectations in 2014; coupled with the sector's lofty valuations, it seems likely that this was a major contributor to the space suffering a down year.

Our actual expectation is that the completion of the current market cycle is likely to wipe out the entire total return of the S&P 500 — in excess of Treasury bill returns — all the way back to roughly October 1997; an outcome that would require a market retreat no larger than it experienced in the past two cycles, and that would not even carry historically reliable valuation measures to materially undervalued levels (see When You Look Back On This Moment In History).

These performance spreads are driven by valuations, expectations, and often simply greed and fear being played out on an industry level.

In any case, investors should keep in mind that the stock market's reaction to Fed cuts has historically been dependent on other conditions such as valuations, economic expectations and the slope of the yield curve.

But when you parse the data on important metrics like valuation and growth expectations, some interesting patterns surface.

Those valuations were based on expectations about the future income the buildings would produce.

Stocks with very strong valuations on current earnings may come with lowered expectations on future earnings, which is why value investors are often called contrarian.

Valuation is an important driver behind stock prices, and it is based on future expectations that can only be estimated.

We combine our medium term expectations of fixed income asset class risk and return with shorter term views on market valuation, cyclical developments and liquidity considerations, matched against the Fund's objectives to develop appropriate asset allocation of the Fund.

For example, the safe withdrawal rate changes over time depending on equity valuations and the safe withdrawal rate can be vastly different depending on your age and expectations about Social Security, see two case studies I did recently at ChooseFI and last week here on our blog.

Considering the aggressive expectations for profit margins, the market's valuation based on expected results may be as stretched as it is on trailing fundamentals.

Note that on the basis of this measure, expected 12 - year S&P 500 total returns associated with current valuation levels are negative, and even if one was to shift the blue line up somewhat closer to the red line in recent years, the associated return expectation would still be close to zero (which is what I actually expect based on MarketCap / GVA and other historically reliable measures).

Attractive valuation based on future expectations for corporate earnings.

This valuation looks inexpensive on an absolute basis, and especially when we factor in the high earnings growth expectations: With a PE multiple of 15.6 and an expected EPS growth rate of 21 % Lowe's trades at a PEG ratio of just 0.74.

Our actual expectation is that the completion of the current market cycle is likely to wipe out the entire total return of the S&P 500 — in excess of Treasury bill returns — all the way back to roughly October 1997; an outcome that would require a market retreat no larger than it experienced in the past two cycles, and that would not even carry historically reliable valuation measures to materially undervalued levels (see When You Look Back On This Moment In History).

While we often have very strong views about long - term and full - cycle market outcomes (based on valuation measures that we find strongly correlated with those outcomes in market cycles across history), we rarely have pointed short - term market expectations.

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.

The Paradox of the Zero Bound Subpar Economic Recovery Gets Premium Market Valuation Wall Street Earnings Expectations Ignore Economic Divergences The Great Divergence An Update on International Market Valuations Business Cycles, Election Cycles, and Potential Risks An Update on Valuations and Forward Earnings Assumptions Bond Yields, Earnings Yields, and Inflation A View from the NBER Recession Indicators Three Observations on Third Quarter Earnings Forward Looking Measures Still Don't Provide Evidence for a V - Shaped Recovery This Earnings Season, Watch Sales Forward Earnings Imply a Return to Near - Record Profit Margins Without Phoenix Stocks, Volume Continues to Contract Is the Job Market Ready for a Recovery?

But when you parse the data on important metrics like valuation and growth expectations, some interesting patterns surface.

However, if one has been playing the buy - and - hold game with quality securities, one has been exposed to a substantial amount of market risk because the valuations placed on these securities have implied overly rosy scenarios prone to popular revision in times of more realistic expectation.

Their valuations are built on low expectations, which leaves room for multiple expansion, or at least minimal contraction.

Despite the expectation of more volatility, we continue to focus on wide moat, large - capitalization companies that are trading at reasonable valuations, in our view.

Spotify on Tuesday went public following months of preparations, having debuted on the New York Stock Exchange at $ 165.90 per share, with that figure amounting to a valuation of $ 29.5 billion, significantly above the startup's expectations and recent estimates which stood at just north of $ 20 billion.

So while some venture funds may be doing their best to inflate expectations and cash in on high valuations, that appears to be causing problems only at the small end of the startup pool — for now.

In addition, attendees will get the latest information on best practices in operations and marketing, valuation trends and investor expectations.