Sentences with phrase «over the valuation multiple»

Businesses have no control over the valuation multiple assigned to them.

Not exact matches

When you purchase a broad swath of equities, say an S&P 500 index fund, the returns you can expect over the next decade or so comprise four building blocks: the starting dividend yield, projected growth in real earnings per share, expected inflation, and the expected change in «valuation» — that is, the expansion or contraction in the price / earnings (P / E) multiple.

Another example, Macy's, which is popular with value investors for a high dividend combined with a low valuation multiples, also saw its worst single - day stock performance post earnings in over a decade, falling 14 percent.

It doesn't matter whether one looks at basic measures such as median valuation multiples over the past (bull market) decade, or whether one uses a more complex discounted cash flow model.

So while the valuation multiples of the largest stocks have dropped by over 50 %, the valuation multiples of the smallest stocks have more than doubled.

It is clear that the bulk of the gains over the past few years have come from higher valuation multiples.

«They are often looking to capitalize on building a brand capable of commanding the high valuation multiples that have dominated the industry over the past few years.

Let's look at what happened to the change in the CAPE valuation multiple and its contribution to total returns in the 1960s, which was an environment of low interest rates to start with which moved higher over the decade.

The first is that rising valuation multiples have been the nearly singular cause for higher prices over the last few years.

That being said, even at today's historically attractive valuation multiples, investors should likely only expect to earn a potential total annual return of about 5.9 % to 6.9 % (1.9 % yield plus 4 % to 5 % annual earnings growth) over the next decade, far below the company's historical return rate and the returns offered by most other dividend aristocrats.

The Aquirer's Multiple is a valuation method that attempts to find attractively priced companies that may be considered for take over.

[NB: Noting market valuations (and M&A multiples) over the years, my rule of thumb is a 10 - 12.5 % operating margin deserves a 1.0 P / S, on average.

Given the company's diverse business lines, projected better environment for financials over the next twelve months and low valuations the market multiple could easily improve to a conservative 12 times forward earnings.