Sentences with phrase «stock valuation measure»

His recent article, World's Simplest Stock Valuation Measure, put forth the idea that:

Not exact matches

Given that valuations were already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.

Measuring shareholder value requires deep fundamental research that (1) translates reported accounting results into true cash flows and (2) quantifies the expectations for future cash flows that is embedded in stock valuations.

It's common to object to the dividend yield as a measure of valuation, given that companies have devoted more of their earnings to stock repurchases than dividend payments in recent years.

At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubble.

Only with a real grasp on the true cash flows of the business can one get an accurate measure of the future cash flow growth implied by the stock's valuation.

At the surface, when we look at valuation measures and other fundamentals and compare them to historical precedents, there is a case to be made that stocks (in particular in the US) are above fair value, if not rich.

Market - Implied Duration of Growth (Growth Appreciation Period) measures the number of years of future profit growth required to justify the current valuation of the stock.

At this point, obscene equity valuations are already baked in the cake on valuation measures that are reliably correlated with actual subsequent stock market returns.

By March 2000, on the basis of historically reliable valuation measures, I projected that a retreat to normal valuations would require an -83 % plunge in tech stocks.

Finally, Chinese stocks (measured by the Shanghai Stock Exchange Composite Index) have trailed their Brazilian counterparts (measured by the Ibovespa Index) and moved in lock step with Russian equities (represented by the MICEX Index) since late January, based on Bloomberg data, and their low valuations are poised to potentially rise in a risk - on environment.

The most reliable measures of individual stock valuation we've found are based on formal discounted cash flow considerations, but among publicly - available measures we've evaluated, price / revenue ratios are better correlated with actual subsequent returns than price / earnings ratios (though normalized profit margins and other factors are obviously necessary to make cross-sectional comparisons).

For instance, as measured by price - to - earnings (P / E) and price - to - book (P / B) valuations metrics, EM stocks continue to trade at a roughly 30 % discount to the broader global equity market (source: MSCI, as of 3/31/2015).

In conjunction with stock valuation ratios like the price - to - earnings ratio and the price - to - earnings - growth ratio, a stock's measure of volatility known as beta can help investors build a diversified...

In an attempt to cast light on this issue, my colleagues at Plexus Asset Management have updated a previous multi-year comparison of the price - earnings (PE) ratios of the S&P 500 Index (as a measure of stock valuations) and the forward real returns (considering total returns, i.e. capital movements plus dividends).

The Importance of Measuring Returns Peak - to - Peak Stock returns equal income, plus growth in fundamentals, plus changes in valuation By John P. Hussman, Ph.D..

Deep Value investors employ a more extreme version of value investing that is characterized by holding the stocks of companies with extremely low valuation measures.

Wall Street analysts love to measure the stock market based on various price metrics, performance metrics and valuation metrics.

Nolte added that despite concerns about the valuation of the FAANG stocks, something he noted has persisted for years with little impact on the stock prices, the group's prospects remained strong by many measures.

With the top stock analysis software behind you, you can leverage our DCF models to quickly and precisely measure the impact of your forecasts on a stock's valuation.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

Hump # 1 was a massive speculative surge that separated the stock market from all reasonable measures of fair valuation.

In the early 1920s, stock market valuation was comparatively low, as measured by the inflation - adjusted present value of future dividends.

Again, if our measures of market internals were to improve, we would allow for the possibility that reliable measures of market valuations could surpass their 2000 extreme, and we would not place a «cap» on how high stock prices could move.

On a wide range of historically reliable measures (having a nearly 90 % correlation with actual subsequent S&P 500 total returns), we estimate current valuations to be fully 118 % above levels associated with historically normal subsequent returns in stocks.

That's fine, but understand that through most of the period prior to the 1960's, interest rates regularly visited levels similar to the present, yet these same measures of stock valuations typically resided at well below half of present levels.

Additionally, many blue chip foreign investments are more attractive investments with stock prices cheaper by most valuation measures: price to earnings, price to sales and price to book.

As of last week, the Market Climate for stocks was mixed - valuations remain unfavorable, technical action was mixed but tenuous, with various indices flirting with widely observed levels of support and resistance (e.g. the 1100 level on the S&P 500), while leading measures of economic activity remain decidedly unfavorable.

c) Market - Implied Duration of Growth (Growth Appreciation Period) measures the number of years of future profit growth required to justify the current valuation of the stocks in the fund.

The current valuation of the S&P 500 is lofty by almost any measure, both for the aggregate market as well as the median stock: (1) The P / E ratio; (2) the current P / E expansion cycle; (3) EV / Sales; (4) EV / EBITDA; (5) Free Cash Flow yield; (6) Price / Book as well as the ROE and P / B relationship; and compared with the levels of (6) inflation; (7) nominal 10 - year Treasury yields; and (8) real interest rates.

Netflix's stock valuation has been a constant source of debate for years, and currently is trading at a price - to - earnings (P / E) ratio of 123x, which is rich by almost every measure — no matter what kind of business model it is.

A stock certificate trading at high valuation based on traditional measures such as price earnings ratio.

Based on many valuation measures, stocks have been fairly expensive for several years.

As of last week, the Market Climate for stocks was characterized by unusually unfavorable valuations and unfavorable market action (a deterioration from the prior week, primarily on the basis of interest - sensitive securities such as bonds and utilities, as well as measures of breadth and distribution).

As I've noted in recent weeks (see in particular the March 27 comment, my assertion that stocks are about double their normal historical valuations also applies to earnings - based measures like P / E ratios.

UK stocks (as measured by the FTSE 100 Index) offer the highest dividend yield of any major region (as measured by the MSCI World Index).1 UK valuations are the cheapest relative to the rest of the world in 15 years.2 What's more, FTSE 100 Index companies with more than 70 % of their revenues from abroad stand to benefit from the weaker pound.

The Fund invests principally in common stocks that are viewed by the Advisor to reflect favorable valuations and / or measures of financial stability.

On a stock selection basis, favorable valuation and market action on our measures are certainly not always rewarded, but that's why we diversify across about 200 individual holdings.

Of particular interest are a host of debt and financing measures as well as overheated stock - market valuations.

By pretty much all measures, it offers access to higher growth rates at lower valuations than the average European stock fund does.

Given that valuations were already rich when the VIX, a commonly used measure of S&P 500 volatility, was at 10, a doubling of volatility suggests stocks should be trading closer to 16 or 17 times earnings, not 21.

«Professor Shiller's P / E10 measure of stock valuations tells us about the market as a whole.

Chinese stocks trade for just 7 times earnings, less than half the valuation of American stocks as measured by the S&P 500.

Stock Strategies The Importance of Book Value Why the price - to - book ratio is the most effective measure of valuation.

Valuation measures like Yale professor Robert Shiller's Cyclically Adjusted P / E Ratio (CAPE) also warn that stocks are a bit pricey, which only heightens investors» concerns.

Varying stock and bond allocations with valuations (as measured by P / E10) improves performance.

With occasional qualifiers as to whether examining All Stocks or Large Stocks, traditional valuation measures work.

This, for us, is a critical requirement for investors, because there are dozens of garbage models that purport to measure stock market valuation, but have little (and sometimes zero or negative) correlation with subsequent market performance.

Valuation Summary: Miscellaneous Factors Beta Beta measures a stock's price volatility relative to the S&P 500.

Looking at other valuation measures, the group of passing companies is priced more richly than the typical exchange - listed stock.