Not only does the stock look cheap when analyzed against peers, but the stock's valuation also
implies profit growth will fall well short of historical trends, as we'll show below.
Not exact matches
Despite improving profitability, upcoming product releases (detailed below) and strong economic trends, HAS» current valuation
implies meager
profit growth, as we'll show below.
Our investment thesis highlighted consistent after - tax
profit (NOPAT)
growth, improving return on invested capital (ROIC), a focused effort to expand into higher margin segments, and a low PEBV ratio that
implied immediate
profit decline.
Market -
Implied Duration of
Growth (Growth Appreciation Period) measures the number of years of future profit growth required to justify the current valuation of the
Growth (
Growth Appreciation Period) measures the number of years of future profit growth required to justify the current valuation of the
Growth Appreciation Period) measures the number of years of future
profit growth required to justify the current valuation of the
growth required to justify the current valuation of the stock.
Though WMT's
growth is decelerating and may decline, it is not likely that the company will incur a permanent 35 % reduction in
profits as
implied by the market's current valuation of the stock.
Our investment thesis highlighted a low PEBV ratio that
implied pessimistic expectations baked into the stock price despite the firm's multi-year history of
profit growth.
Upside reward potential is strong as the stock has to go over $ 82 / share to trade at a value that
implies the company's
profits will experience a 0 % decline, a no -
growth scenario.
But even if America's future average economic
growth is as steep as optimists believe, say just over 4 % a year, the current level of share prices
implies that
profits will rise even faster.
FEYE still earns our Dangerous rating and its valuation still
implies significant future
profit growth.
Despite its track record of
profit growth, GT trades at a PEBV of 0.7, which
implies that the market expects the company's NOPAT to permanently decline by 30 %.
The current stock price (~ $ 33 / share)
implies over about 12 %
growth in
profits compounded annually for about 10 years.
c) Market -
Implied Duration of
Growth (Growth Appreciation Period) measures the number of years of future profit growth required to justify the current valuation of the stocks in the
Growth (
Growth Appreciation Period) measures the number of years of future profit growth required to justify the current valuation of the stocks in the
Growth Appreciation Period) measures the number of years of future
profit growth required to justify the current valuation of the stocks in the
growth required to justify the current valuation of the stocks in the fund.
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.
A low dividend payout ratio means that a company is returning a small portion of its earnings to investors, while a high payout ratio
implies that a company uses the majority of its
profit for dividends instead of for future
growth.