Not exact matches
Still, he
expects good
share -
price growth over the next few years, and if Europe's economic fortunes improve, then investors could see stocks soar.
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.
Such risks, uncertainties and other factors include, without limitation: (1) the effect of economic conditions in the industries and markets in which United Technologies and Rockwell Collins operate in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity
prices, interest rates and foreign currency exchange rates, levels of end market demand in construction and in both the commercial and defense segments of the aerospace industry, levels of air travel, financial condition of commercial airlines, the impact of weather conditions and natural disasters and the financial condition of our customers and suppliers; (2) challenges in the development, production, delivery, support, performance and realization of the anticipated benefits of advanced technologies and new products and services; (3) the scope, nature, impact or timing of acquisition and divestiture or restructuring activity, including the pending acquisition of Rockwell Collins, including among other things integration of acquired businesses into United Technologies» existing businesses and realization of synergies and opportunities for
growth and innovation; (4) future timing and levels of indebtedness, including indebtedness
expected to be incurred by United Technologies in connection with the pending Rockwell Collins acquisition, and capital spending and research and development spending, including in connection with the pending Rockwell Collins acquisition; (5) future availability of credit and factors that may affect such availability, including credit market conditions and our capital structure; (6) the timing and scope of future repurchases of United Technologies» common stock, which may be suspended at any time due to various factors, including market conditions and the level of other investing activities and uses of cash, including in connection with the proposed acquisition of Rockwell; (7) delays and disruption in delivery of materials and services from suppliers; (8) company and customer - directed cost reduction efforts and restructuring costs and savings and other consequences thereof; (9) new business and investment opportunities; (10) our ability to realize the intended benefits of organizational changes; (11) the anticipated benefits of diversification and balance of operations across product lines, regions and industries; (12) the outcome of legal proceedings, investigations and other contingencies; (13) pension plan assumptions and future contributions; (14) the impact of the negotiation of collective bargaining agreements and labor disputes; (15) the effect of changes in political conditions in the U.S. and other countries in which United Technologies and Rockwell Collins operate, including the effect of changes in U.S. trade policies or the U.K.'s pending withdrawal from the EU, on general market conditions, global trade policies and currency exchange rates in the near term and beyond; (16) the effect of changes in tax (including U.S. tax reform enacted on December 22, 2017, which is commonly referred to as the Tax Cuts and Jobs Act of 2017), environmental, regulatory (including among other things import / export) and other laws and regulations in the U.S. and other countries in which United Technologies and Rockwell Collins operate; (17) the ability of United Technologies and Rockwell Collins to receive the required regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the
expected benefits of the merger) and to satisfy the other conditions to the closing of the pending acquisition on a timely basis or at all; (18) the occurrence of events that may give rise to a right of one or both of United Technologies or Rockwell Collins to terminate the merger agreement, including in circumstances that might require Rockwell Collins to pay a termination fee of $ 695 million to United Technologies or $ 50 million of expense reimbursement; (19) negative effects of the announcement or the completion of the merger on the market
price of United Technologies» and / or Rockwell Collins» common stock and / or on their respective financial performance; (20) risks related to Rockwell Collins and United Technologies being restricted in their operation of their businesses while the merger agreement is in effect; (21) risks relating to the value of the United Technologies»
shares to be issued in connection with the pending Rockwell acquisition, significant merger costs and / or unknown liabilities; (22) risks associated with third party contracts containing consent and / or other provisions that may be triggered by the Rockwell merger agreement; (23) risks associated with merger - related litigation or appraisal proceedings; and (24) the ability of United Technologies and Rockwell Collins, or the combined company, to retain and hire key personnel.
At its current valuation of ~ $ 67 /
share, HLF has a
price to economic book value ratio (
price - to - EBV) of 1.2 That ratio means that the market
expects only 20 %
growth in NOPAT for the remainder of HLF's existence.
At its new
price of ~ $ 23 /
share, the market
expects 10 % compounded annual NOPAT
growth for the next 11 years.
But if you are a high - flying
growth company that is
expected to grow earnings per
share at 20 % every year, and you know that your stock
price will plummet the first moment you post disappointing results, the incentive to engage in fraudulent behavior seems a lot greater.
Mac — in a declining PC industry, we
expect Mac to continue its market
share gain and support our forecast for its strong performance of 7.3 % revenue
growth in FY 2015, followed by 3.6 % in FY 2016, and 4.6 % in FY 2017 on flat average selling
prices over the three year period of $ 1,230.
For the safety of stable
growth, you often give up some return so don't
expect the
share prices to shoot higher in any given year.
Analysts earlier this year were
expecting the earnings headwinds of falling oil
prices and a stronger U.S. dollar to diminish, driving better earnings - per -
share growth in the U.S. by the end of 2016.
Fuelling the meteoric
share price rise (up some 80 per cent since the start of the year) are big earnings expectations, though it's worth noting the
share price run is easily outpacing the
expected earnings
growth.
According to Nielsen, the foreign invasion is
expected to run out of puff as its market
share matures, while generic wines are
expected to run out of
growth in the sub $ 10
price point as consumers increase their spending on more expensive wines.
But investors shouldn't
expect as much
growth in the
share price as there might be with a
growth stock.
A valuation metric for determining the relative trade - off between the
price of a stock, earnings generated per
share (EPS), dividend yield and the company's
expected growth.
As long as a firm maintains its earnings per
share momentum and exceeds the market's
growth expectations, its stock
price can be
expected to outpace the market.
The ratio provides insight into the trade off between the
price of the stock, the earnings per
share, and company's
expected growth rate!
The purpose of the PEG Ratio is to evaluate and the trade off between the
price of a stock, the earnings per
share, and the company's
expected growth rate.
Growth companies such as Google are
expected to increase their profits markedly in the future; thus, the market bids up their
share prices to high valuations.
While I never
expected significant operational
growth potential here, this reversal still came as a shock — but my primary error was to presume management would actually focus on shareholder value & sensible capital allocation, despite having no real skin in the game... i.e. no vested interest in the current
share price.
This simple equation combines uniquely,
growth and value investing and compares a company's
price - earnings (P / E) ratio with its
expected, or estimated, earnings per
share (EPS)
growth rate.