Sentences with phrase «margins revert to the mean»

GaveKal Research recently published a piece that was highly critical of the idea that profit margins revert to the mean over time.

Not exact matches

First, profit margins in the U.S. seem to have stopped mean reverting in the old, normal way, and second, some real estate markets have bubbled up and then stayed there at high prices.

I think Michael Dell is an incredible entrepreneur, and the business model he developed for Dell Computer allowed him to reap incredible rewards from an industry with commodity characteristics, mean - reverting profit margins, and low barriers to entry.

Profit margins may mean - revert eventually, but it might be a while for that to happen, given the global pressures that are keeping wage rates low.

Profit margins will mean revert when, labor begins to be scarce again.

My view is that profit margins will not revert to mean for many years, until the increase in capitalist labor is absorbed.

Earnings yields are still high relative to Treasuries, though if profit margins mean - revert, this argument is hooey.

Some are taking current revenue and then assigning a mean reverted profit margin to come up with what earnings should be, then assigning some mid point multiple that doesn't take historically low interest rates into consideration.

High margin, high growth companies usually mean revert due to: (1) new entrants and future competition; (2) new, disruptive business models; and / or (3) new technologies that make a company's product obsolete.

I think Michael Dell is an incredible entrepreneur, and the business model he developed for Dell Computer allowed him to reap incredible rewards from an industry with commodity characteristics, mean - reverting profit margins, and low barriers to entry.