Sentences with phrase «high valuation of the stock»

The MCTWI is a way to adjust for the currently high valuation of the stock market.

Not exact matches

Dropbox has a private valuation of $ 10 billion, and though it's uncertain whether it will be able to initially sell shares above it, the stock could trade higher once it's public.

Simply put, a deal that offers participating preferred stock creates a lower implied valuation for your business than a plain vanilla term sheet with no participation feature, because the investors will end up with a disporportionately higher piece of the value created.

Some, including another famous investor, George Soros, have suggested that the mixture of high stock valuations and uncertainty about policy decisions under Trump could cause the market to crash.

The strong close to 2004 has resulted in higher stock valuations in the face of rising interest rates and slower earnings growth.

«Consumer stocks have had a good run, and there's only so much you can buy of Loblaw or other stocks that have run up to valuations that are quite high.»

Although value stocks typically hold up better in times of volatility, this bull market has been exceptionally smooth — up until the last year, that is — and favored high - growth momentum stocks, which tend to have more expensive valuations.

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.

At Lululemon's stock peak in the summer of 2011, the yoga - and running - gear maker commanded a market valuation that was 350 % higher than rival Under Armour.

His deep - value philosophy can be boiled down to four points: he's looking for high - quality stocks that protect against the downside; he wants businesses where short - term issues have caused investors to abandon the company; he wants to wait until valuations are «out - of - this - world» cheap, and he tries not to pay attention to macro issues like eurozone debt or Chinese growth.

At a valuation of $ 19 billion, Snap stock would trade at 47 times sales, not quite as sky high as the price - to - sales ratio of 62 that we previously computed.

But even then, the stock had a sky - high valuation, and shares have fallen further in the interim, giving the company an ROI of minus 23 %.

The determination of Albertsons» majority owner, private equity firm Cerberus Capital Management LP, to carry out the IPO despite volatility in the stock markets underscores its confidence that it can fetch a high valuation for Albertsons.

Equities really have had the best of all worlds these past few years, with earnings growth in the double digits and financial conditions remaining very accommodative, despite the recent rise in both short - and long - term interest rates.1 The combination of rising earnings growth and benign financial conditions is a powerful set of tailwinds which usually drives stock valuations higher.

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.

With a track record of high profitability, significant growth opportunities, and a cheap valuation, this stock could offer significant upside for investors.

The MSCI Global Gold Miners Index has rallied an incredible 76 % this year, but much of the performance is due to the recovery in valuations: According to Bloomberg data, gold miner stocks were battered last year, with the index down 45 % from its 2015 high.

«My feeling is that really since the latter part of last year, a number of challenges have raised up for the stock market,» Paulsen said, noting that stock valuations are higher, interest rates are rising, the labor market is tightening, and it appears inflation could finally be on the horizon.

When you look back on this moment in history, remember that the valuation of the median stock was never higher.

Its stock valuation has dropped by more than half since July 2015; in January, it posted its first full - year loss since 2008; and one of its many tranches of bonds — one specifically designed to be a high - risk, high - reward safety valve in times of trouble — has recently begun to crash.

For the purposes of this article, we wanted to highlight companies that had a significant recent track record of growth in addition to their high profitability and cheap valuations, which is why the three stocks featured all have five consecutive years of NOPAT growth.

When we look at the five FAANG stocks of Facebook Inc. (FB), Apple Inc. (AAPL), Alphabet Inc. (GOOGL), Netflix Inc. (NFLX), and Amazon.com Inc. (AMZN), it's only Amazon and Netflix that trade at very high forward valuations.

This headwind is further exacerbated by the already high valuations of U.S. stocks.

In my view, it is very important to understand that the rally we've seen in stocks was a momentum rally from a deeply oversold low, starting from a very high historical level of valuation, and never generating the favorable trend uniformity which has always appeared prior to past recession lows.

Of course, that final line — that there is a new, higher «equilibrium valuation of equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great DepressioOf course, that final line — that there is a new, higher «equilibrium valuation of equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depressioof equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depressioof Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depressioof the 1929 stock market crash which ushered in the Great Depression.

US large - cap stocks returned more than 9 percent in the first half of 2017, the most since 2013, and although prices are close to all - time highs, analysts are of the opinion that valuations are not very expensive for a majority of these stocks, as stronger earnings upped the price - to - earnings ratio, which has generally remained above average for quite a few years.

With these high valuations comes the specter of a bubble not seen in international stocks.

The high valuation of the S&P 500 shouldn't send investors running for the hills, but I do expect that the market will be more turbulent this year as we see corrections in individual stocks and groups of stocks that have gotten especially overvalued.

The valuation is neither entirely unreasonable nor unusually appealing, but compared to the fairly high valuation of the market currently, it may make a good choice for a stock with a decent dividend yield (3.43 %) and consistent dividend growth history.

The decisive factors for the stock market are liquidity (i.e., money supply growth rates, which have collapsed), valuations (extremely high valuations will eventually be corrected, often violently) and market internals & technical divergences (which are a reflection of liquidity and risk appetites).

Frankly, the stock was at that price just a few months ago — after it had already fallen off of a high valuation.

This portfolio was started in the spring of 2015, a time when everyone was calling for a correction, valuations were high and stock prices too expensive.

The 1980 - 1982 period, where global stocks fell more modestly, can be explained by the extremely low levels of valuation during that period, unlike today's higher levels.

In some cases, a high rate of earnings or revenue growth may justify a high stock price valuation, particularly if the company has a competitive advantage in its market.

This is a platform upon which Papa John's has become one of the world's largest pizza chains, but a sky - high valuation, slight slowdown in business, and CEO stepping down have combined to punish this stock tremendously throughout 2017.

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.

When «high short interest» becomes a viable stock - picking strategy and conventional valuation methods no longer apply for many stocks, we can't help but feel a sense of déjà vu.

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.

With valuations very rich, bullish sentiment high, and stocks generally overbought, there's a certain momentum to the market that makes it likely - in terms of probability - that stocks will be higher in the weeks ahead.

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 %.

Warren Buffett, the world's second - richest man, distinguishes between periods of comparatively high and low stock market valuation.

Passive investing substitutes diligence with diversification and can create a «rising tide lifts all boats» effect on the valuation of both high and low quality stocks within an index.

Other classes of stock have preference and my stock is worth $ 0 even at reasonable ale prices (i.e. only participates at high valuation liquidity event).

While there are a number of factors for investors to stay mindful of — including relatively lofty US valuations (the S&P 500 price - to - earnings ratio suggests stocks may be expensive relative to historical values), geopolitical tensions around the globe (including the Korean peninsula), and legislative uncertainty (such as the final details and implementation of tax reform legislation)-- healthy corporate earnings have underpinned the market's rally to record highs.

Again, if our measures of market internals were to improve, we would allow for the possibility that reliable measures of market valuations could surpass their 2000 extreme, and we would not place a «cap» on how high stock prices could move.

That certainly doesn't imply that equally catastrophic losses are likely to follow (stocks lost 85 % of their value from 1929 to 1932 as valuations collapsed from historic highs to historic lows, and keep in mind that even moving from a 70 % loss to an 85 % loss involves losing half of your money, which is why I insisted on stress - testing in 2009).

It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio.

Rather, it means that investors will receive returns consistent with relatively high starting valuations — nominal total returns for the stock market of around 5 % -6 %.

But as the Fed's stock market «high - wire juggling act» continues, the valuation of the stock market becomes increasingly dislocated from the underlying economic and financial market fundamentals.

While investors looking at the 2007 highs undoubtedly observe a significant amount of apparent «room to recover» for stocks, it is extremely important to recognize that those 2007 valuations were what one might call «Bubble Part II», and priced stocks for terribly poor long - term returns.