Sentences with phrase «high current valuations»

The direct cause that most of these estimates point to is high current valuations of stocks.

Because they don't notice that brilliant past returns are a consequence of sky - high current valuations and may easily mistake those returns for structural alpha.

MSEX would also be unattractive for those seeking growth or value, given the low potential for the former and very high current valuation.

Not exact matches

Similarly, once high - flying Twitter has a current valuation of about $ 21 billion, about 20 percent lower than its immediate post-IPO market cap.

«The current equity market valuation is certainly stretched in historical terms but it does not appear unreasonable based on the high level of corporate profitability,» he said.

Spotify's valuation when it lists - expected to be within 90 days after filing — is forecast to be a few billion dollars higher than current trades, as illiquidity risk tends to depress the value ahead of listing, the sources said.

Given its current valuation, comparable valuation multiples and the very high bar for revenue growth required, it looks like Dropbox is overvalued.

The venture joins a growing roster of Web video companies using current high valuations to raise money or sell.

Many investors seem to believe that the cyclical factors that have brought valuations to the current precipice will maintain valuations at a permanently high plateau, or even allow them to advance indefinitely.

Earning 8 % per year would be helpful but may be difficult to pull off in the current environment of higher valuations and lower interest rates.

This assumption is unlikely but allows us to create very optimistic scenarios that demonstrate how high expectations in the current valuation are.

These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis of potentially higher - yielding equities that in some instances may represent more downside risk than upside potential at current valuation levels.

For most of these unicorns, even if they are able to successfully reduce their expenses enough to turn a profit, it will destroy the rapid growth rates that led to them achieving their current high valuations.

The gauge trades at a valuation of 18 times reported earnings, the highest since 2011 when it was in the middle of a 19 percent slide, its biggest during the current five - year bull market.

One challenge to our growth investing strategy in 2018 may be the high level of investor skepticism surrounding current valuations for US equities in general, and for technology in particular.

If your valuation is already too high then seek approval to let them invest at a price lower than the current value.

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.

«GM trades at a significant discount to its intrinsic value despite the company's strong operating performance... By placing what we believe are conservative valuations on each component, it's easy to get a value that is 27 % to 79 % higher than the current share price.

Many (including me) believe the reason that both stock prices and real estate prices are currently trading at historically high valuation ratios is tied to the Feds current «experiment» in holding interest rates at almost zero for half a decade and running....

It has ran up to $ 91.63 at its 52 week high and currently trading at $ 76.79 almost 15 % lower and gives an great opportunity to add or initiate positions at current valuations in my opinion.

This assumption is very unlikely but allows us to create very optimistic scenarios that demonstrate how high expectations embedded in the current valuation are.

Coupling that lower valuation on the company's earnings with the much higher current yield leads to a lot of upside, along with what could be more near - term and long - term income from the stock.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

In other words, if a very long - term investor is willing to rely on the notion that valuations when they sell will match or exceed the unusually high valuations of the present, that investor can reasonably expect stocks purchased at current levels to deliver long - term returns somewhere the range of 8 - 10 %.

The S&P 500 registered a record high after an advancing half - cycle since 2009 that is historically long - in - the - tooth and already exceeds the valuation peaks set at every cyclical extreme in history but 2000 on the S&P 500 (across all stocks, current median price / earnings, price / revenue and enterprise value / EBITDA multiples already exceed the 2000 extreme).

Current market valuations are certainly high enough to make investors very nervous and trigger - happy.

The current stock price implies significant profit growth despite increasing competition, negative margins, and worries over cash flow, which brings us to issue # 6, TSLA's sky high valuation.

The shrinking time between funding rounds shows how Silicon Valley's current boom is not just about start - ups reaching a high valuation but also about how fast they can pull that off.

While I can't predict whether the market will rise or fall in 2017, investors may want to focus on capital preservation given current historically high valuations.

US Federal Reserve (Fed) Chair Janet Yellen fanned the flames last month when she warned «there are potential dangers» in current market valuations, which she described as «quite high.»

With the stock's current valuation appearing reasonable, especially relative to the REIT's high quality, today could be a good time to more closely evaluate STORE.

This means that investors in funds with high exposure in this area could face significant losses on current valuations, if they revert to a more normal level.

However, if it were somehow known that rates would * permanently * stay as low as they currently are then stocks would logically be priced much much higher than their current valuations.

An investment in OHI at its current valuation should reward investors very well in future years with the demographic tail wind pushing profits higher.

If home prices continue to rise, or even if prices taper off and stay stagnant at the current high valuations, the ongoing renovation trend is sure to continue.

Third, given current valuations, there is an exceedingly high probability that returns over the next three years will average 10 - 15 % annually.

Given what his price / peak earnings tells him about the market's current valuation (stomach - churningly high) and his perception that several of the supporting investment elements that have so far made valuations irrelevant are starting to break down, what's he doing with the portfolios in his care?

Even though there has been a lot of commentary around current high stock valuations against lackluster earnings growth for the S&P 500, it is «neither practical or precise» for an investor to use this as a basis for lowering their exposure to stocks or selling their portfolio.

With the stock's current valuation appearing reasonable, especially relative to the REIT's high quality, today could be a good time to more closely evaluate STORE.

The imbalances within this recovery are likely going to represent the next obstacles to higher valuations - or maintaining current levels of elevated valuations - that investors confront.

That is because PEP's average valuation over the past 18 years has been P / E = 22.1, which is actually a tad higher than its current valuation of 21.5.

While that's not a bad total return projection for a high quality business, DLR's current valuation multiples give me pause.

Given the current high valuations of equities, and potential interest rate risk for bonds, I've decided to take a gradual, but accelerated, approach to rebalancing our portfolio.

In Table 3, of the 96 tests for factors, only 2 have the «wrong» sign, with higher valuation pointing to (negligibly) higher subsequent returns; both instances of the «wrong» sign are in the emerging markets, for which we have shorter history, and are for the low beta factor, for which the current valuations, in the 99th percentile, are quite extreme relative to history.

However, consider the current environment of the market: most stocks are at an all - time high and it is slim pickings to find good valuations.

As described in my introduction to the concept of the MCTWI, in times of high valuation your stock market investments are actually worth less than their current price.

In this article published in The Australian Roger discusses the current red flags in the market, will higher interest rates bring stock valuations down?

Are the current large market leaders enjoying higher stock prices simply because of their position as larger weights in the overall market funds (into which vast sums of money are pouring every month), rather than because they are good profitable companies with fair valuations?

Given the current high level of dispersion in profitability across companies, many high - quality companies are trading at reasonably attractive valuations.

That will affect future returns, as does the current high valuations, low interest rates, and excess capacity.