Sentences with phrase «if valuation multiples»
The more corporate earnings grow, the higher the stock market if valuation multiples stay the same.
https://www.financialsamurai.com/ Not exact matches
If a sales multiple is particularly high, it may indicate an overly - stretched valuation.
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.
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.
You can't make sense of the numbers if the higher multiples are giving lower valuations.
If we assume that valuations will remain where they are today, multiples above prior historical averages, then the future rate of that compounding is going to be reduced accordingly.
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.
After weeding out bad businesses the next needle (s) to pass is the parallel decision on if this good stock is also cheep judging from the absolute level of a number of valuation multiples and if the investor in the process of analyzing the qualities and inexpensiveness of the stock has been free from biases.
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.
And if such a new paradigm turns out to be (even half - way) correct, America's effective high yield status in the developed world could have even more bullish implications elsewhere — I mean, what's the appropriate discount & ultimate valuation multiple for markets like Europe (or Japan, or the UK, etc. etc.), when their risk - free rates are close to zero (or even negative) the whole way out the curve?!
It might be foolish setting this price target, because the outcome's probably binary... Once they're comfortable with an investment thesis, plus a valuation multiple / range, investors are loathe to change their minds... so if necessary, companies often have the time / space to grow into any valuation eventually.
However, with Welltower trading near all - time highs and many bond - like stocks trading at premium valuation multiples relative to history, short - term, more risk averse investors need to keep in mind the risk of a short to medium - term correction if rates do begin to rise and cause capital outflows for bond - like stocks.
If your multiple listing service is a member of RPR, your MLS / CIE - provided information will be merged with the public data, allowing you to easily produce analytical reports related to clients» specific property — including the REALTOR Valuation Model ® that helped Werner land her listing.