Sentences with phrase «relative valuation metrics»

A second shortcoming of relative valuation metrics is the benchmark that is used, typically the metric's long - term historical average.

The relative valuation metrics, such as market cap / GDP, CAPE, Tobin's Q, and Hussman's PE which need to be added to dividend yield and growth to capture total return, generate forecasts that are less optimistic.

Not exact matches

Stocks trade at a high valuation on most metrics including relative to history, relative to interest rates, and relative to inflation.

One popular valuation metric, the Equity Risk Premium (ERP), can be useful in assessing both relative returns and the right mix of stocks versus bonds.

Estimating future surplus starts with current metrics like earnings or cash flow, so using the most recent financial information against the market valuation is a good indicator of the relative cheapness of a stock.

One of the great anomalies of investing: The historical long - term outperformance of certain smart beta or factor - based strategies relative to the broader equity market (think choosing stocks based on their valuations, momentum, low volatility or quality metrics such as profitability).

Knowing how stocks are priced historically relative to some metric like earnings or cash flows is far more instructive than knowing whether stocks are at an all time high or not (we've addressed the predictive utility of stock valuations in several posts, including here and here).

A valuation metric for determining the relative trade - off between the price of a stock, earnings generated per share (EPS), dividend yield and the company's expected growth.

Greenblatt discusses his firm's disciplined valuation process that uses both absolute and relative value metrics to rank... Read More

I have dabbled in quantitative factor models in the past, and normally I start with an index, group by sector, and then compare each company relative to its sector (I use valuation metrics, liquidity, technical factors such as relative strength and price relative to moving averages, earnings volatility, earnings estimates revisions, balance sheet metrics, beta, and a proprietary risk / reward metric).

A leading academic, Robert Shiller of Yale, has, however created a metric to measure the relative valuation of the market — the CAPE — cyclically adjusted price earnings ratio.

In the video I will take a look at Lowe's valuation relative to several important fundamental metrics.

The choice of CAPE is not without its critics, who are quick to point out that changes in accounting rules and changes to the CPI calculation, along with the timing and benchmark issues inherent in relative valuation measures make CAPE an unreliable metric.

This might arise from another stock specific, relative or an absolute valuation metric / approach they've chosen.