Sentences with phrase «low valuation measures»

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures.

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures.

Not exact matches

With the S&P 500 within about 8 % of its highest level in history, with historically reliable valuation measures at obscene levels, implying near - zero 10 - 12 year S&P 500 nominal total returns; with an extended period of extreme overvalued, overbought, overbullish conditions replaced by deterioration in market internals that signal a clear shift toward risk - aversion among investors; with credit spreads on low - grade debt blowing out to multi-year highs; and with leading economic measures deteriorating rapidly, we continue to classify market conditions within the most hostile return / risk profile we identify — a classification that has been observed in only about 9 % of history.

Even if the growth rates of nominal GDP and U.S. corporate revenues (including foreign revenues) over the coming 20 years match their 4 % growth rate of the past 20 years, and even if the most reliable valuation measures merely touch their historical norms 20 years from today, the S&P 500 Index two decades from now will trade more than 20 % lower than where it trades today.

Longer - term valuation measures — notably cyclically adjusted earnings (CAPE)-- are even more elevated and suggest low - to mid-single digit returns over the next five years.

Finally, Chinese stocks (measured by the Shanghai Stock Exchange Composite Index) have trailed their Brazilian counterparts (measured by the Ibovespa Index) and moved in lock step with Russian equities (represented by the MICEX Index) since late January, based on Bloomberg data, and their low valuations are poised to potentially rise in a risk - on environment.

In the early 1920s, stock market valuation was comparatively low, as measured by the inflation - adjusted present value of future dividends.

Measured in this way, these private start - ups seem to be fairly safe: their valuations have steadily marched upwards, and the volatility — especially relative to public market companies — is very low.

«The 2014 sales market will continue to be dominated by primary sales, with beneficiary packages offered offsetting some impact of the cooling measures, while secondary sales will be further suppressed with primary prices being close to or even lower then secondary prices in the locality and lowering valuation of second - hand units,» he says.

On the basis of valuation measures most tightly related to actual subsequent long - term market returns, we also estimate that the S&P 500 is likely to be lower 12 years from now, compared with current levels, though dividend income may push the total return just over zero on that horizon.

By pretty much all measures, it offers access to higher growth rates at lower valuations than the average European stock fund does.

Higher yields signal a lower valuation, though other measures, such as the price - earnings ratio, should also be considered.

On long - term measures of value (for example, Graham's 10 - year trailing P / E ratio and corporate profits as a proportion of GDP) market prices are well below average and approaching all time lows (See Future Blind «s post Market Valuation Charts prepared in October last year when the S&P 500 was around 1160).

In contrast, the aggregate measure indicates that profitability is trading very near its historical norms of relative valuation, perhaps explained by low P / B value stocks having far less profitability than they have historically.

Thank goodness the relationship is weak, as current valuations for low beta stocks are well into the top decile of historical experience regardless of the valuation measure used.

Low beta is the primary exception in our results, showing only one instance of statistical significance — at the 10 % level for the two - year horizon (matching the half - life), using the blended valuation measure — over the entire combination of horizons and two valuation measures.

In the process of scanning the investment landscape to find value amidst the all time highs for the indices, I've noticed that a number of big cap tech stocks are priced at low valuations relative to their earnings and free cash flow, measured on an absolute basis and relative to their own historical valuations.

For instance, the blue dot on the value factor scatterplot suggests that prior to March 2016 the valuation level of 0.14 — meaning the value portfolio was 14 % as expensive as the growth portfolio measured by price - to - book ratio, and lower than the historical norm of 21 % relative valuation — would have delivered an average annualized alpha of 8.1 % over the next five years.