Sentences with phrase «low valuation multiples»

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.

The title is an apt description of the content as value investing in this case refers to the currently popular quality - compounding genre, not investing in low valuation multiple, bombed out, deep value stocks.

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.

Not exact matches

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.

Neither DraftKings nor Revolution would discuss valuation, although multiple sources say that the new round values DraftKings substantially lower than the approximately $ 2 billion post-money mark it received after raising capital in the summer of 2015.

Despite being the core drivers of their businesses, they are left with a small percentage of their companies due to multiple financings at low, early stage valuations.

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.

It's important to emphasize that I don't view any of these groups as «undervalued» - even the largest stocks are above historical norms of valuation (with various individual exceptions), and even apparently «low» P / E multiples should be evaluated critically since they're on record earnings.

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

But in the late 90s, when small technology companies with excessive valuation premiums displaced big businesses from the large - cap universe, investors who thought large caps were low risk got a double whammy — large - cap stocks» earnings and P / E multiples both declined sharply.

The first was that I was buying inferior businesses due to what I perceived at the time to be a low multiple (but alas not a low valuation).

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.

In addition to liking BMC's products, we liked the company's aggressive share repurchases and its valuation, which is much lower than the multiple of sales at which many similar companies have been acquired.

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

«The later stages of the 2009 — 2017 bull market are a valuation illusion built on share buyback alchemy... The technique optically reduces the price - to - earnings multiple because the denominator doesn't adjust for the reduced share count... Share buybacks are a major contributor to the low volatility regime because a large price insensitive buyer is always ready to purchase the market on weakness... Share buybacks result in a lower volatility, lower liquidity, which in turn incentivizes more share buybacks, further incentivizing passive and systematic strategies that are short volatility in all their forms... Like a snake eating its own tail, the market can not rely on share buybacks indefinitely to nourish the illusion of growth.

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.

Finally, looking at valuation, European banks traded at a material discount to tangible book value, one standard deviation3 below their historic forward price - earnings multiple, and near a 20 - year low relative to global banking peers as the year came to a close.4 We are also finding select financial sector values in Asia, in both mature, under - earning banking markets like South Korea and Singapore, as well as underpenetrated, growth - oriented markets like China (particularly in insurance) and India (particularly in banking).

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

When you're in this type of market, I think the best investing style is buying stuff with a few catalysts, that are dirt dirt cheap (cause then you can still get legit valuation multiple expansion), and have slightly lower market exposure.

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

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.

Standard Total Return approaches receive a boost during times of low valuations as multiples expand.

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.

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.

Given that the lower of these valuation multiples is almost 25 times more expensive than the average Euclidean holding, it is no surprise that we have missed these recent gains.

The stock's current valuation seems reasonable considering the company's stability, but I'd prefer to own the stock at a somewhat lower cash flow multiple for a greater margin of safety.

Given Visteon's multiple internal and external catalyst's, highly attractive absolute valuation and the outsized spread between the company's «when issued» shares and the already depressed valuation's of its global competitors, we think that the stars are aligning for bargain hunting investors to generate spectacular returns of 30 % + in a short period of time with relatively low risk.

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.

It was all about valuation back then — finding stocks that were trading at low multiples of earnings and free cash flow.

to $ 2.0 Million / MW), a capacity - weighted US average installed project cost of nearly $ 2.1 M / MW, and deal multiples generally ranging between $ 2.0 - 2.6 M / MW in recent years, I was pretty comfortable using an estimated depreciated book value of USD 651 million (i.e. $ 1.85 M / MW) for the lower end of my valuation range.

Their valuations are built on low expectations, which leaves room for multiple expansion, or at least minimal contraction.

Since many of these blue chips are trading at historically low valuations, they are offering an entry - level dividend yield that is in some cases a multiple of what you would normally expect to be able to get from these stocks.

Given the company's diverse business lines, projected better environment for financials over the next twelve months and low valuations the market multiple could easily improve to a conservative 12 times forward earnings.

At 13 times forward earnings, Apple already suffers from the lowest relative valuations within the cohort, and is even lower than the greater S&P 500's multiple of 17 times, so any multiple expansion would be welcomed.