Sentences with phrase «high over valuation»

Not exact matches

Holmes says that number has since more than doubled — in his opinion, high enough to justify a valuation over $ 500 million.

The differences in opinion arise primarily over valuation and whether its rapid growth can continue to justify a price - to - earnings ratio that rarely falls below 40 and has peaked as high as 138.

The bearish sentiment in Asia followed a softer lead from Wall Street, which has led a global equities rally over the past year thanks to strong world growth fueling higher corporate earnings and stock valuations.

Bate told CNBC that valuations are too high, «markets are starting to get jittery and we would expect a more severe correction over the medium to long term.»

A common theme over the last few years has been to price at the highest valuation.

Singapore's sovereign wealth fund GIC, among the world's biggest investors, said it was turning cautious and expected returns to slow over the next decade, given high valuations, uncertainty over monetary policy and modest economic growth.

In the past, similarly high valuations have been associated with below - average returns over the longer term.

Another example, Macy's, which is popular with value investors for a high dividend combined with a low valuation multiples, also saw its worst single - day stock performance post earnings in over a decade, falling 14 percent.

In what might represent the concerns over Proton, Citi, for one, noted that the deal would improve the valuation of the seller, raising its target price for DRB - Hicom's shares to 2.30 ringgit from 1.86 ringgit, keeping a Buy / High Risk call on the stock.

The PPS set on Thursday brought the company's valuation to $ 4.4 billion (over one - third higher than the $ 3 billion valuation received... Read More

However, over the past two decades, several companies have defied the odds, garnering sky - high valuations in as little as two years.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

The two largest funds in the segment — the $ 15 billion iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Corporate Bond ETF (HYG) and the $ 9 billion SPDR Bloomberg Barclays High Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest raHigh Yield Bond ETF (JNK)-- have faced sizable asset outflows as investors fret over high valuations and rising interest rahigh valuations and rising interest rates.

In fact, according to our analysis, though higher U.S. valuations were associated with lower future returns, there were numerous instances in the past, particularly in the mid-to-late 1990s, when very high U.S. valuations coincided with strong returns over one - and three - year horizons.

The resource super-cycle that drove valuations so much higher over the last decade is now hobbling along at a snail's pace and China is a big part of the reason why.

To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

The stock has dropped over 50 % in the past eight months, and even if the firm's growth slows dramatically and margins shrink, the stock's cheap valuation makes it a safe stock with high potential upside.

«Many participants reported that their contacts had taken the previous month's turbulence in stride, although a few participants suggested that financial developments over the intermeeting period highlighted some downside risks associated with still - high valuations for equities or from market volatility more generally,» the minutes said.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

When valuations move from depressed levels to historical extremes over the span of several market cycles, the result is a «secular bull market» and headlines about permanently high plateaus.

Now, it's true that when we examine pre-crash extremes, like 2000 and 2007, we'll typically find that actual returns over the preceding 12 - year period were higher than the returns that one would have expected on the basis of valuations 12 years earlier.

The resource super-cycle that drove valuations so much higher over the last decade is now hobbling along at a snail's pace and China is a -LSB-...]

China's startup ecosystem has earned a reputation of fast rises and hard landings: during the last two years, sky - high funding rounds and valuations for less - than - ideal projects have made (over) saturation of companies and business models the new normal.

I've often called it the Iron Law of Valuation: the higher the price you pay today for a given stream of future cash flows, the lower your rate of return over the life of the investment.

It is clear that the bulk of the gains over the past few years have come from higher valuation multiples.

These nearly zero interest rates is what drove many U.S. and European fixed income investors towards higher income opportunities in their own home countries — so, they bought more equities, REITs and dividend growth stocks over the last 5 years, driving up valuations (though the February correction has brought back some sanity.)

We could see a return to these valuations over the next couple of years on higher demand, a stronger macroeconomic backdrop and cyclical fundamentals, as shown in the following chart courtesy of DoubleLine Capital:

One of the key valuation differences between a regular Buy and Strong Buy is that the company must have enhanced price appreciation catalysts that support annual Total Returns of 25 % or higher (over the next two years).

At the market's actual 2000 peak, valuations were so high that even a future price / peak earnings ratio of 20 could have been expected to result in a nearly zero annualized returns over the following 10 years.

Because of the unusual profile of valuations over the past few years, the Fund's returns were higher during the 2000 - 2003 bear market than I would expect during typical bear markets.

The «canonical» market peak typically features rich valuations, rising interest rates, often a reasonably extended and «flattish» period where, despite marginal new highs, momentum has gradually faded while internal divergences have widened, and finally, an abrupt reversal in leadership, from a preponderance of new highs over new lows (both generally large in number) to a preponderance of new lows over new highs, with the reversal often occurring over a period of just a week or two.

Interestingly, if over the course of the forecast horizon, they go up and then revert back to where they are today, the effect on the return will actually be negative, because there will be no net change in valuation, but some of the ensuing dividends will have been reinvested at higher valuations than those available today.

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.

Figure 1, which shows the trends in average return on invested capital (ROIC) and cumulative after - tax operating profit (NOPAT) for the sector over the past few years, clearly shows that profits are flat to down and not driving stock valuations higher.

Over the past twelve months, we have added 14 names to the portfolio, all of which, in our view, can be described as well - managed, high - quality businesses selling at average or below - average valuation levels.

To help illustrate what's happening when stocks which appear to be high value on paper revert to their mean valuations over time, consider betting on a basketball game.

On March 24, Macron met Richard and Martin Bouygues separately to present them with his conditions: a higher valuation for Orange shares as the base of the transaction, a cap at 12 percent for Bouygues» potential stake in Orange, a standstill preventing Bouygues from raising its stake over a period of seven years, and a restriction on double voting rights for 10 years.

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.

«They are often looking to capitalize on building a brand capable of commanding the high valuation multiples that have dominated the industry over the past few years.

Since the World Cup ended certain players drove their valuations even higher, and the good folks over at Brazilian sports consultants Pluri Consultoria broke out the calculators to show us how much the best and brightest have inflated post tournament.

Among associations representing pension managers, for instance, much debate has focused on whether the 8 percent rate of return assumed over the valuation period is too high.

That is because Southern's average valuation over the past 10 years has been P / E = 16.4, which is higher than the ratio of 15 used in the first step.

Within credit we prefer up - in - quality exposures and favor the U.S. over Europe, where richer valuations mean lower income potential and higher sensitivity to interest rates.

We prefer selected subordinated financial debt within European credit and favor high - quality U.S. credit and emerging market debt over government bonds, but credit valuations are elevated across the board.

The Firm seeks to invest in high - quality businesses at low valuations, with the goal of generating outperformance over a full market cycle while managing the level of risk.

The combination of high quality insurers, low valuations, and leverage gave Shelby Davis very strong returns over a multi-decade period.

Though some analysts discuss these secular periods as if they are some sort of magical 17 - year periodic structure that is inherent to the markets, our view is much simpler: over the long - term, markets fluctuate between extreme optimism / high valuations and extreme pessimism / depressed valuations.

There are, however, better and worse ways to underperform the market over short periods of time and, despite global profit margins nudging to all - time highs, the valuations of growth stocks are now pricing in ever - higher future earnings.

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.