Historically, periods
of valuation compression have very much been part of the late - cycle playbook, and late cycle may well be where we are heading in the coming 6 to 12 months.
Not exact matches
Historically,
valuation compression has been part
of the late - cycle playbook and that may be where we are headed for the next 6 - 12 months.
As mentioned, some
valuation compression might be warranted here, but the stock is selling for almost half (on a
valuation basis)
of what it has, on average, over the last five years.
But the ongoing
compression in European banking
valuations is puzzling — who the hell wants to bet & sweat over sub - 0.5 P / B banks, when the cream
of the crop remains on sale at 1.0 times book (or less)?!
The energy sector's
valuation compression was based on the surprising weakness in oil prices, which are a key determinate
of energy company revenue and profitability.
The reality is we are starting to see
valuation compression happening to fintech and bitcoin and blockchain startups will not be spared
of this fate.
The Dodd - Frank appraisal standards were created to address the fee
compression that is said to have resulted from the Home
Valuation Code
of Conduct, which took effect in 2009 and barred loan officers and brokers from selecting appraisers.