Sentences with phrase «of valuation premiums»

Retrospective reserving subtracts accumulated value of benefits from accumulated value of valuation premiums as of a point in time.

Again, it's debatable how you might play these: Maybe you buy them simply because a lazy & uninformed mainstream media will probably keep recommending the likes of Overstock.com, AMD & NVIDIA as Bitcoin / blockchain plays, or sell them «cos there's far too much of a valuation premium built in already (NVIDIA, for example, is also enjoying an AI - related tailwind — it now sports a 52 P / E)?

Not exact matches

Merger skeptics argue that today's premium valuations make it a bad time for Gilead to be a biotech buyer: The recent M&A surge has driven up the prices of companies investors see as potential Gilead targets — including Vertex (VRTX) and Bristol - Myers Squibb (BMY).

Thus for denying shareholders a premium valuation that would have been higher than the entire industry, and the opportunity to have a stake in a new company with incredible earnings potential, Coppola now tops Cramer's Wall of Shame.

Our long - term forecasts are based on our assessment of current valuation measures, economic growth and inflation prospects, as well as historical risk premiums.

My general sense is that stock valuations are reasonable, though not deeply undervalued, and risk premiums are abating given that the economy appears to have pulled back from the brink of large - scale bank failures.

One is legitimate — every year in which short - term interest rates are expected to be zero instead of say, a typical 4 %, should reasonably warrant a 4 % valuation premium in stocks and bonds, over and above run - of - the - mill historical norms (one can demonstrate this using any discounted cash flow approach).

Even if we expected 4 more years of zero interest rates, that expectation would only justify a premium of about 16 % over reliable historical valuation norms.

In fact, he estimated a valuation of $ 41 billion, or a 15 percent premium to Target's value.

To get more specific, our dynamic DCF model shows that even if we assume OCLR's NOPAT declines by 50 % in 2018 and takes a decade to get back to current levels, the stock has a present value of $ 7.60 / share, a 12 % premium to the current valuation.

These forces result in the tech sector exhibiting a strong secular growth profile and in our view, help justify a premium in the form of higher valuations.

Second, if one wishes to argue that today's low interest rates will «justify» permanently extreme valuations even 10 - 12 years from today, it's useful to remember that if interest rates are low because the growth rate of cash flows is also low, then no valuation premium is «justified» at all.

The Market Climate remains on a Crash Warning, characterized by extremely unfavorable valuations, unfavorable trend uniformity, and hostile yield trends, particularly long - term bond yields and various measures of risk premiums.

«We see Apple as a provider of premium priced electronics, a lucrative market but one that may not sustain its current market valuation of $ 473 billion in the years ahead,» Colin Gillis, an analyst at BGC Financial, wrote in a note to clients this week.

Similarly, the mismatch in market hours between ETF shares and those of underlying markets makes intraday valuation more difficult and produces noisy premiums / discounts.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

While the current premium on U.S. stocks makes some sense in the context of low inflation and low rates, valuations look stretched relative to stocks in the rest of the world.

I don't see any company wanting to give CALD much of a premium to its current valuation, but acquisitions are not always rational, so I can't rule out the possibility.

Maintaining the BTC valuation premium may eventually become challenging in view of this, but obviously that remains open to question — the first mover advantage and name recognition effect were so far sufficient for BTC to maintain its top spot.

The stock would warrant a premium valuation (above the trend line) by virtue of management's focus on ROIC and its ability to communicate that focus to investors.

This focus on an asset's earnings power and, in particular, the ability of assets to earn returns in excess of desired returns is the essence of my intrinsic valuation, which is based on Steven Penman's residual income model.1 The basic idea is that if a company is not earning a return in excess of our desired return, that company, like the bank account example above, deserves no premium to book value.

... formal asset valuation models (extrapolations of historical return data) provide the most (least) predictive estimates of the future equity risk premium.

Our analysis of valuation considers not only earnings, but free cash flows, dividends, book values, revenues, profit margins, interest rates, inflation, risk premiums and other factors.

It is mainly a history of low yields being pressured higher - of thin risk premiums being pressured to widen - of rich valuations being pressured lower.

Both trade at premium valuations, reflections of their strength today and also their potential in the future.

«Simple Asset Class ETF Value Strategy» (SACEVS) finds that investors may be able to exploit relative valuation of the term risk premium, the credit (default) risk premium and the equity risk premium via exchange - traded funds (ETF).

These strategies each month allocate funds to the following asset class exchange - traded funds (ETF) according to valuations of term, credit and equity risk premiums, or to cash if no premiums are undervalued:

Investors may be tempted to add to bond proxies and related defensive stocks as their premium valuations to the rest of the market have lessened.

That's created uncertainty, and uncertainty is the enemy of premium valuations.

Its substantial and growing Net Operating Income will, when the time is right for the Port Authority to monetize all or part of its ownership in the building, support a premium, world - class valuation.

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.

When the liquidity premium is high, the asset is said to be illiquid, and investors demand additional compensation for the added risk of investing their assets over a longer period of time since valuations can fluctuate with market effects.

The two peaks on the chart are the two - tiered «glamour stock» markets of the early 1970's and the late 1990's, where large companies commanded steep valuation premiums.

Specifically, the All Asset strategies» recent strong performance (see Figure 1) may be attributable in large part to four fundamental drivers of global capital market returns: the breakeven inflation rate (BEI), EM currency valuations, EM - to - U.S. cyclically adjusted price / earnings (CAPE) ratios and the global value premium.

Of course there are businesses that can justify premium - to - market valuations on the basis of their ability to incrementally deploy capital at high rates of return, but that subset of businesses is very, very smalOf course there are businesses that can justify premium - to - market valuations on the basis of their ability to incrementally deploy capital at high rates of return, but that subset of businesses is very, very smalof their ability to incrementally deploy capital at high rates of return, but that subset of businesses is very, very smalof return, but that subset of businesses is very, very smalof businesses is very, very small.

By the end of the day, that initial valuation premium of $ 3.7 billion turned into a deficit of $ 1.2 billion, and that was against a rising market.

E-Health is a health insurance broker, and over its existence hasn't done anything deserving of a premium valuation.

When everyone believes in the inevitability of stocks, à la «Dow 36,000» (we'll get there by 2025 or so), equity valuations are high, past equity performance has probably been great, and the future equity premium is small — think 1929, 1972, August 1987 and February 2000.

Over that period, domestic stocks have consistently traded at a premium to exporters (in other words, they have been more expensively valued), with an average PE valuation premium of 15.1 %.

With charts like this, looking at relative valuation, you can expect some «mean reversion» over time and you have to make a judgement about what you think is an appropriate level of premium / discount, and in turn, what you think is an attractive level.

Valuation: The new British Airways award chart went into effect at the end of April, dramatically increasing the mileage requirements for most premium cabin redemptions, particularly on long - haul flights.

Similarly, the mismatch in market hours between ETF shares and those of underlying markets makes intraday valuation more difficult and produces noisy premiums / discounts.

We allow that short - term interest rates may be pegged well below historical norms for several more years, and we know that for every year that short - term interest rates are held at zero (rather than a historically normal level of 4 %), one can «justify» equity valuations about 4 % above historical norms — a premium that removes that same 4 % from prospective future stock returns.

Even after some pretty disappointing results during the second half of 2016, these strategies still trade at premium valuations.

As a result, it's the relative valuation between the two choices that matter because it's the relative risk - premium spread that drives much of investors decision making (whether they're conscious of it or not).

Taking the current $ 64.0 mio valuation, and a current annual $ 8.4 mio premium, it's back of the envelope easy to reach a $ 162.3 mio FV over a 4.6 yr LE, when using a 12 % IRR.

That valuation excludes a change of control premium, which Bank of America estimates should be between 20 % and 30 % over their estimate.

The TLIs valuation reduces by about $ 1.3 mio to reflect 3 subsequent policy maturities, increases by $ 2.8 mio to reflect premiums, and we then solve for an estimated $ 2.9 mio of LE adjustments.

The level of the premium would depend on how much is allocated to equities and the valuation level of equities over that time frame.

As evidenced by the earnings and price correlated graph, Emerson Electric is a high - quality Dividend Champion that has a legacy of the market placing a premium valuation on its stock.