Not exact matches
While the
stocks look expensive by some
metrics, Robbins is focused on the companies» ability to grow through synergies created in their mergers.
In the United States last year, close to 20 percent of private - sector employees owned
stock, and 7 percent held
stock options, in the companies where they worked,
while about one - third participated in some kind of cash profit - sharing and one - fourth in gain - sharing (when workers get additional compensation based on improvement on a
metric other than profits, like sales or customer satisfaction).
While stock prices may be the ultimate barometer of the success or failure of a given investment choice, Buffett does not focus on this
metric.
While declining credit
metrics are worth keeping an eye on, Synchrony's
stock has fallen so much that shares now trade for less than nine times forward earnings.
As a result, in many of our strategies, we are once again finding opportunities in
stocks like Ally Financial, Cummins, and Fiat Chrysler that are cheap on traditional «value»
metrics while at the same time continuing to hold «growth»
stocks that still do not trade at an appropriate premium.
While some of these newer
metrics show dividend
stocks and / or dividend growers performing slightly better than the broader market, it's certainly not the slam dunk for dividend
stocks that was initially implied by the Ned Davis graph.
Readers, how do you currently implement valuation
metrics while investing in the
stock market?
While other approaches are more appropriate for industry - specific analysis, such as price - to - book for banks, the P / E is a widely - accepted
metric in assessing the overall
stock market's valuation.
Once you learn why book value is a meaningless
metric for companies that buy back
stock, you won't freak out when you see companies trading at 8x book value
while buying back its own
stock.
But using net margin as a
metric for
stock screening has been shown to not be useful,
while using price / sales HAS predictive value.
It works in reverse too — some of the best short sellers see the market / investors completely hung up on a specific valuation
metric / scenario for a particular
stock or sector,
while other valuation approaches suggest an entirely different reality.
By this
metric alone,
while stocks have given up much of their speculative froth so far this decade, they could unfortunately drop 80 - 90 % further if the 1980 low is to be reached before this bear market concludes.
While earnings have been the traditional
metric to derive the value of a
stock, Michael Mauboussin points out that cash flows reflect better economic reality than earnings in the article, «What You See and What You Get» dated July 23, 2007.
While short sellers aren't always right about the direction or more importantly, the timing of their bets, we can not rely solely on either of these
metrics in isolation to determine the possible direction of a particular
stock.
And
while investor sentiment may be more negative for certain property types, we must also look at the second
metric to get an idea of the magnitude of a move in the
stock prices of those property types based on the liquidity available and the number of shares needed to be covered.