Sentences with phrase «relative value of stocks»

Profits for a value strategy are somewhat dependent on the relative value of the stocks you're buying compared with history — so timing of profits from a value strategy are more predictable.

For estimating the relative value of stocks, you need to set an accurate benchmark.

When all other things are equal, valuation ratios are a good way to quickly compare the relative value of a stock against others, as well as to look at the relative value of a stock over time.

Not exact matches

One wrinkle is that an employee would need to receive more phantom stock relative to direct ownership to get the same amount of equity compensation because they are not receiving the underlying value of the stock.

On technology stocks: «I think all of these stocks it's all a question of relative value.

World stocks rose 20 percent last year, significantly outpacing the average on bond markets, meaning the relative value of funds» equity holdings has increased without a single new share being bought.

His evidence: rising short rates, low long - term rates (suggestive of little inflation), the rise in value stocks, and outperformance in emerging markets relative to U.S. equities.

Value investors and non-value investors alike have long considered the price earnings ratio, which is also known as the p / e ratio for short, a useful metric for evaluating the relative attractiveness of a company's stock price compared to the current earnings of a firm.

As usual, the performance of our stocks relative to the major indices tends to drive day - to - day fluctuations in Fund value when we are hedged, but that differential has also been our primary source of return over time.

and considered a number of other objective and subjective factors to determine the best estimate of the fair value of our common stock, including; issuances of preferred stock and the rights, preferences and privileges of our preferred stock relative to those of our common stock; and the likelihood of achieving a liquidity event, such as an initial public offering or sale given prevailing market conditions.

It is a decent stock selection factor overall, but relative to the other ways of measuring value (earnings to price, cash flow to price, EBITDA / EV, etc) it is sub par.

When it comes to equities, most investors realize a stock's price per share isn't a particularly good barometer of how expensive or inexpensive it is relative to its intrinsic value.

Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.

We argued that the market had experienced a multi-year process of de-rating, as stock prices languished while corporate cash flows and book values had multiplied, and had become inexpensive in absolute and relative terms.

Snapchat parent Snap reports earnings Thursday, and for all the investor hype and media attention surrounding it, it's important to note one thing: Snap is one of the most extremely over-analyzed stocks relative to its overall value.

While there are a number of factors for investors to stay mindful of — including relatively lofty US valuations (the S&P 500 price - to - earnings ratio suggests stocks may be expensive relative to historical values), geopolitical tensions around the globe (including the Korean peninsula), and legislative uncertainty (such as the final details and implementation of tax reform legislation)-- healthy corporate earnings have underpinned the market's rally to record highs.

CenterSquare aims to uncover low relative price opportunities across sectors and at different turning points in the real estate cycle by looking beyond the obvious factors of stock price and underlying real estate value.

Just compare the charts of bitcoin to any major stock market average and the relative value pops out.

For now, we believe investing in a combination of international stocks and credit offers the best relative value.

To be sure relative cheapness is not a guarantee of relative outperformance, but to the extent that value stocks are cheap and the economic outlook is improving, value has a reasonable chance of continuing its run.

American Railcar stock leads the way in this regard, but its yield of 2.1 % puts it only in the middle of the pack relative to other dividend paying equities in the Value Line universe.

Since 2008, though, growth stock indexes have persistently prevailed over value in terms of relative performance.

But I would say my concept of value has changed to a more relative sense of valuation, based on the expected growth rate applied against the price of the stock.

«They are promoting a lot of value but are not capturing it,» he said, noting the stock trades at lower multiples relative to its peer group and to its net asset value.

The real reason is Ford's lagging stock value, a bigger concern for William Clay Ford and his relatives, who control the company with 40 percent of its stock.

For now, we believe investing in a combination of international stocks and credit offers the best relative value.

Of equal interest to contrarian investors, the second chart suggests that value - oriented stocks look historically cheap relative to their growth - oriented peers.

As a result, the prices of growth stocks may become too high relative to their fundamentals, predicting future reversal and the outperformance of value stocks.

As I've described in previous blogs, years of underperformance have left large cap value stocks historically cheap relative to large cap growth stocks.

Higher real yields change the relative value proposition of stocks and bonds, raising the bar for equities and other risk assets as investors re-assess risk / reward.

Logically, stocks shouldn't be valued relative to current rates, but rather relative to the expected discounted return from rates across the duration of the investment.

That means that as your stock funds increase in value relative to your bond funds, a greater portion of your investment portfolio will be held in these riskier, more aggressive assets — something that could throw off your allocation and risk tolerance.

One consequence of this extended outperformance is that value stocks have become much more attractive relative to growth stocks.

The stock's price to free cash flow ratio is lower than those of all its major competitors except Pfizer, suggesting that not only are cash flows strong, but shareholders are getting good relative value for their investments.

They sound like reasonably valued stocks relative to the rest of the market.»

They most often look for solid companies whose stocks are trading at low multiples of price relative to book value, cash flow, earnings, dividends, or sales.

Despite the move, the stock remains a relative value among high growth software companies, in our opinion, and growth should reaccelerate as the company anniversaries the declines in Uber revenue in the second half of the year.

Also, when you own a stock you own part of a company and inflation will increase the value of the company relative to the inflated currency.

John Bogle and other lumpers warn us that it's unlikely that a typical investor will stick with a strategy that doesn't work as expected for 10 years or longer, and that abandoning the bets on small - cap or value stocks after an extended period of underperformance will reduce the investor's long - term returns relative to simply investing in the total stock market.

Value Line's «Relative P / E» for JNJ is 1.02 (red circled area in clip below), meaning the company's P / E ratio is right about at the average of the 1,700 stocks VL analyzes.

Buy cheap stocks relative to book value that don't have a lot of debt.

Value Line's Relative P / E for Disney is under 1.00 (red circle in clip below), meaning the company's P / E ratio is lower than the average of the 1,700 stocks VL analyzes.

More importantly, the outperformance of value stocks relative to growth stocks is significantly larger for the strategies executed in small - cap stocks.

In the simplest interpretation, value strategies favor the stocks of companies with high accounting fundamentals - to - price ratios (value stocks) relative to those with low fundamentals - to - price ratios (growth stocks).

Still, the value effect received its most famous academic endorsement in a 1992 paper by finance professors Eugene F. Fama and Kenneth R. French, who defined value stocks as those shares that trade at a low price relative to their book value («The Cross-Section of Expected Stock Returns,» Journal of Finance, Vol.

The team ranks the stocks in this universe based on a series of growth factors, such as the change in consensus earnings estimates over time, the company's history of meeting earnings targets, earnings quality and improvements on return on equity, as well as a series of value criteria, such as price - to - earnings ratio and free cash flow relative to enterprise value.

Safety Rank measures a company's «total risk of a stock relative to the approximately 1,700 other stocks covered» by Value Line.

Value investors are likely to scrutinize the relative values of the individual stocks that make up a mutual fund's portfolio.

Value investors seek stocks that are priced attractively relative to some measure of intrinsic worth - for instance, they look for stocks selling at temporarily low multiples of price relative to book value, cash flow, earnings, or sValue investors seek stocks that are priced attractively relative to some measure of intrinsic worth - for instance, they look for stocks selling at temporarily low multiples of price relative to book value, cash flow, earnings, or svalue, cash flow, earnings, or sales.

That means that assets and debts denominated in dollars, e.g. cash, loans, bonds, and the like, also decrease in value relative to all the many assets that are not defined in terms of dollars, e.g. stocks, commodities, and real estate.