Sentences with phrase «multiple measures of valuation»

Not exact matches

There will always be conceptual issues with any single valuation measure, so the best we can do is evaluate valuations from the standpoint of multiple historically reliable approaches.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

These periods are driven by generally rising multiples of valuation as measured by the price / earnings ratio (P / E).

Bogle has typically used dividends as a fundamental, but sales and smoothed measures of earnings can also be used, provided that the corresponding valuation multiples are used.