The phrase
"low valuations" refers to when something, like a company or an asset, is considered to be priced lower than its actual value.
Full definition
His approach focuses on predictable businesses managed by honest and competent people that are trading
at low valuations based on their earnings.
And the four big banks are trading at even
lower valuations of between 6 and 7.5 times earnings.
Conversely, value players look for stocks
with low valuation ratios, indicating that most market players (growth investors) view them as losers.
In other words, investors for whatever reason will demand a much
lower valuation in stocks, requiring current prices to fall a lot.
It is appalling that such a premium car does not have a basic feature, a feature found in almost any car in this day and age of technology of
much lower valuation.
You can transfer Marriott Rewards directly into miles and airline travel, but you're going to get
very low valuation.
The academic research certainly shows that the wide range of returns starting
from low valuations have a higher average than the wide range of returns starting from high valuations.
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.
Even if the startup does find a buyer, these kinds of companies often have
low valuation multiples, making them less attractive venture capital investments.
We won't observe «investment merit» until we observe
significantly lower valuations, but market action by itself could encourage a somewhat more constructive stance.
Once in a while the prevailing market mood is so pessimistic that you can look around and find many quality companies at
low valuations based on readily apparent levels of profits.
Many of the tools that conventional analysts use are tools that were developed at times when stocks were at
lower valuation levels.
These stocks are often characterized by recently falling stock prices,
low valuation metrics and large cash holdings.
In the meantime, investors carry
low valuation risk and are rewarded with a potential 6 % total shareholder yield.
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.
After all, highly valued companies use their stock as currency to buy stocks with lesser valuations, and stocks with
low valuations tend to buy back stock or increase dividends.
Additionally, high or attractive total return potential on a few of them is primarily more a function of
current low valuation than growth.
It can take 10 years or even a bit longer for the investor emotions that cause insanely high or
insanely low valuations to weaken and thereby permit prices to revert to the mean.
From small energy companies to companies that provide equipment, services, or distribution to oil and gas providers, businesses in the energy sector will inevitably experience reduced earnings and
thus lower valuations.
While applying post-war criteria would have resulted in an overall gain between 1929 and 1935, the bulk of that gain was driven by market exposure accepted during periods of
exceptionally low valuations.
And while the recent new year rally has been on relatively light volumes, we
expect low valuations and good dividend yields will lure investors back in.
True to form, higher valuations lead to lower returns and
lower valuations lead to higher returns on average.
After many years of experience we have become accustomed to tuning out much of the rhetoric that
accompanies low valuations: controversy, fear, and doubt about near term prospects.
Since then, however, performance has reversed, as stocks with
lower valuations gained nearly 3 % while their richer counterparts gained 1 %.
We're amazed to be able to uncover — through thorough, discipline research — terrific businesses at
remarkably low valuations.
The lack of growth is a problem, but based on the trends and business model, I consider the
rather low valuation to be justified and likely undervalued.
Higher vacancy rates and / or decreased rental rates leads to lower income, and
ultimately lower valuations, possibly causing trouble for these loans when it comes time to refinance.
Moreover, as an experienced value investor I clearly understand that
low valuations in a raging bull market are usually associated with issues and challenges sometimes real, sometimes imaginary.
You can transfer Marriott Rewards directly into miles and airline travel, but you're going to get
very low valuation.
Notice that regardless of whether P / E ratios rose or fell during these investment periods, subsequent returns were substantially higher
from low valuations than from high ones.
We won't observe «investment merit» until we observe
significantly lower valuations, but market action by itself could encourage a somewhat more constructive stance.
Because they are politically incorrect, companies in the tobacco, alcohol and defense industries tend to trade
at lower valuations and higher dividend yields than the broader market.