Not exact matches
It gives you a current estimated
valuation of your business, one - click reports, and an interactive optimization tool that lets you compare your company's performance to the competition, test scenarios to see
how various
metrics impact your company's value, and set specific targets to help you reach your goals.
In the presence of a broad range of reliable
valuation metrics uniformly at more than twice their historical norms, coupled with the most severe overvalued, overbought, overbullish, rising - yield syndrome we define, it is instructive
how shorter - term action has evolved near those points.
We composed a blend of five key
valuation metrics — including forward price - to - earnings ratios and price - to - book value — and examined
how strong the relationship was between starting
valuations — or
valuations at the time of purchase — and the variability of subsequent U.S. dollar returns over time.
Knowing
how stocks are priced historically relative to some
metric like earnings or cash flows is far more instructive than knowing whether stocks are at an all time high or not (we've addressed the predictive utility of stock
valuations in several posts, including here and here).
We composed a blend of five key
valuation metrics — including forward price - to - earnings ratios and price - to - book value — and examined
how strong the relationship was between starting
valuations — or
valuations at the time of purchase — and the variability of subsequent U.S. dollar returns over time.
I'm now going to explain
how to properly implement
valuation metrics while investing, since you now know the four major ones.
I'm going to explain four major
valuation metrics here, and
how you can use them to improve your investment results.
Readers,
how do you currently implement
valuation metrics while investing in the stock market?
As far as MMM goes, you can see exactly
how the current
valuation (using a number of
metrics) stacks up against the recent historical averages:
Regardless of
how a stock might score based on its
valuation metrics or growth attributes, etc., a poor Zacks Rank still means the company's earnings estimate revisions are going down, which means a much greater likelihood that the stock will go down too.
Value guru Roy Ward of Cabot Benjamin Graham Value Investor shows
how different
valuation metrics can find strong, undervalued stocks.
Furthermore, we were interested in
how to best integrate our
valuation metrics into a coherent statistical framework that would provide us with the best estimate of future returns.