Sentences with phrase «higher valuation multiple»

The stake's on Donegal's books at 23.8 M, and last valued by the court at 26.2 M — considering more recent deals, I'd hope / expect Donegal can successfully argue for a significantly higher valuation multiple, but obviously that will also depend on the evolution of MMM's EBITDA... They should also argue against what seemed like debatable adjustments to MMM's EV previously.

But the firm's research indicates that stock buybacks do not change investors» estimates for long - term earnings - per - share growth, or induce them to accord a company a higher valuation multiple.

Ferragamo May Seek Higher IPO Rating Than Prada (Bloomberg)» [Salvatore Ferragamo] may seek a higher valuation multiple than its bigger rival Prada SpA... [the company] may be valued at as much as 2.25 billion euros ($ 3.2 billion), or 26 times estimated 2012 profit.»

Considering its low - single - digit growth recently and the huge portion of revenue the product segment already contributes, rising iPhone sales may not be enough for investors to award Apple a higher valuation multiple.

We believe that the company can command an even higher valuation multiple in the years ahead that would bring it more in line with other high quality, financial - technology service providers.

Yet structurally lower interest rates point to sustainably higher valuation multiples than in the past.

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

Lower rates boost the value of future earnings when discounted into today's dollars, supporting higher valuation multiples.

«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.

Yet structurally lower interest rates point to sustainably higher valuation multiples than in the past.

Lower rates boost the value of future earnings when discounted into today's dollars, supporting higher valuation multiples.

When this happens (all business cycles eventually do come to an end) we'll be left with double valuation headwinds: falling earnings forcing high valuation multiples higher and higher stock / bond relative PE ratios.

But an excruciatingly high valuation multiple almost by necessity implies both.

Not exact matches

If a sales multiple is particularly high, it may indicate an overly - stretched valuation.

While that's higher than peers such as Nikon and Canon, which have sales multiples closer to 1, it's still quite low compared to the valuations of other companies in the tech world.

Using those multiples, you'd get a valuation, on the high end, of about $ 4.5 billion.

Kostin also outlined three strategies: Secular growth, or companies where sales growth is expected to rise at least 10 percent for multiple years without high valuations; firms that are investing in capital expenditures and research and development; and companies with a strong chance to be acquired.

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.

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

Domestic - facing stocks have faster expected sales and earnings growth but trade at a nearly two point P / E multiple valuation discount relative to stocks with high international sales.

The more corporate earnings grow, the higher the stock market if valuation multiples stay the same.

These Fed - induced speculative valuations are now evident across the board, as the median price / revenue multiple on S&P 500 components (as well as S&P 1500 components) is now the highest in history, easily exceeding the 2000 peak.

If accounting earnings actually drove valuations, then companies with high EPS growth should command higher multiples, and companies with low or negative EPS growth should have lower PE multiples.

With an emphasis on small investments in capital efficient businesses with low entry valuations and high ownership, small funds can produce attractive returns from more modest sub $ 110 million M&A exits and generate outsized returns from one or two «homerun» exits which can return multiples of the fund's total committed capital.

Notice that in 2000, valuation multiples were highest for the largest stocks and lowest for the smallest stocks.

The basis for that is really simple: Valuation multiples are high.

«The move to slowly bring its newly formed hotel business to 3,000 owned room and 2,000 managed rooms is a necessity which should bring greater stability, a higher margin profile and valuation multiple,» Nazir wrote.

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.

A company capable of boasting sustained gross profit margins that are materially higher than its peers is almost always more efficient, better run, and a safer long - term investment provided the valuation multiple isn't too high.

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).

You can't make sense of the numbers if the higher multiples are giving lower valuations.

The chart below provides some insight into S&P 500 valuations, breaking price / revenue ratios into ten deciles from highest to lowest multiples.

On valuations, it is important to note that the market entered February with multiples at multi-year highs.

The graph shows that high multiples almost always coincide with low economic volatility, and bubble valuations coincide with very low volatility.

That said, a larger - than - expected QE program should be a tailwind for European cyclical companies as it would expand multiples, in much the same way that U.S. QE has driven valuations higher.

With low valuations, investors have enjoyed the prospect for high expected returns even if valuations contracted further, and also faced a high probability that a future increase in P / E multiples would add further to their returns.

Investors don't typically wait for high levels of inflation before adjusting stock valuation multiples lower.

Although their valuation multiples never hit the likes of Polaroid or the FANGs, they reached high levels for low - growth businesses.

As John Hussman noted in Inflation, Correlation, and Market Valuation, low inflation may often coincide with high multiples, but they don't justify them.

The start of a contraction in valuation multiples has historically come long before high levels of inflation.

The proposal, led by a mutual fund with investments in Oracle, points out that multiple studies show that board and managerial diversity are linked to better corporate performance and higher stock market valuations.

With limited analyst coverage and low trading liquidity, many high - quality small companies are «lost in the shuffle» and trade at significantly lower valuation multiples than larger firms.

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

The latter occurs when the momentum effect is shifting from high - valuation - multiple stocks to cheap stocks or vice versa, which creates high turnover in both the long and short portfolios, triggering very active trading.

Let's look at what happened to the change in the CAPE valuation multiple and its contribution to total returns in the 1960s, which was an environment of low interest rates to start with which moved higher over the decade.

The first is that rising valuation multiples have been the nearly singular cause for higher prices over the last few years.

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.

That's because when stocks have high multiples and tight spreads, there's little upside in holding them (future return has been brought forward to today) but there's lots of downside due to their equity valuations tendency to mean revert.

Even if they did, and you value the company at an appropriate P / E and / or P / S multiple based on those metrics, I'd be hard pressed to come up with a valuation much higher than today's market price.

On balance, a valuation based simply on current metrics seems neither too harsh nor too optimistic — there are still plenty of higher TV / radio M&A multiples to reference, but I think a 12 P / E and a 2.0 P / S ratio (based on a 21.8 % operating profit margin) are pretty neutral values to apply.