Sentences with phrase «term average valuation»

To calculate the «true» value of your investments (that is, what their price would be at the stock market's long - term average valuation) you just multiply the value of your investments by the MCTWI.

It is drawn at a value of P / E = 17.4, because that is Smucker's long - term average valuation going back before the Great Recession.

Out of 9,194 stocks tracked by Standard & Poor's Compustat research service, 3,518 are now trading at less than eight times their earnings over the past year — or at levels less than half the long - term average valuation of the stock market as a whole.

Not exact matches

There's no question that it today's valuation — if you look at the S&P overall, forward PE's are about 18.5, the long - term average is more like 15.5 — you could say that it looks a little bit rich.

In the past, similarly high valuations have been associated with below - average returns over the longer term.

Investors should also take note that poor years — those in the bottom quartile of returns — tended to be worse when starting valuations were more elevated over the long - term average.

But stock performance has actually outpaced gains in earnings, and as a result, US equity valuations appear stretched as we begin 2018 — for example, the S&P 500's price - earnings ratio is well above longer - term historical averages.

To expect normal or above - average long - term returns from current prices is to rely on the market bailing out the rich overvaluation of today with extreme bubble valuations down the road.

The assumption is that valuations are bound to some long - term average — and will necessarily revert.

But with long - term bonds and non-cyclical equity sectors trading at historically extreme valuations while cyclical sectors trade at valuations below their long - term average, we think that risk aversion is creating numerous investment opportunities for investors willing to build a portfolio of more economically sensitive companies.

The second valuation step is to compare LAZ's price to its own long - term average P / E ratio.

The company's cash flow is a better metric to use for profit and valuation, and investors are paying much less for cash flow now (even though it's very likely to rise considerably in the near term) than they've been paying, on average, for the last three years.

The second valuation step is to compare WMT's price to its long - term average P / E ratio.

In the past, above - average stock market valuations were followed by below - average long - term returns.

The second valuation step is to compare Hasbro's price to its own long - term average P / E ratio.

This instance may be different in the near term, but a century of evidence argues that the completion of the market cycle will wipe out the majority of the gains observed in the advancing portion to - date (even without valuations similar to the present, the average, run - of - the - mill bear market decline has erased more than half of the market gains from the preceding bull market advance).

Valuations are still cheap, with the EM world's price - to - book ratio one standard deviation below its long - term average.

In effect, this combination has pushed the price / earnings valuation on forward earnings down to 13.6 which is significantly below its long - term average of 16.

The second valuation step is to compare Verizon's price to its own long - term average P / E ratio.

Looking back through history, whenever value stocks have gotten this cheap, subsequent long - term returns have generally been strong.3 From current depressed valuation levels, value stocks have in the past, on average, doubled over the next five years.4 Not that we necessarily expect returns of this magnitude this time around, but based on the data and our six decades of experience investing through various market cycles, we believe the current risk / reward proposition is heavily skewed in favor of long - term value investors.

Our valuation for FNF is based on long - term home purchase assumptions combined with refinancing falling to historically average levels.

The second FASTGraphs valuation looks at «fair value» being defined by the stock's long - term average P / FFO ratio.

The second valuation step is to compare Southern's price to its long - term average P / E ratio.

If they are a close friend / family or other situation where leaving on good terms is critical, you probably have to accept either not getting the maximum value for your share of the business, or to give up the valuation to a third party you and the remaining manager trust and taking what they say is fair, or some combination of this and averaging some other outside valuations.

On long - term measures of value (for example, Graham's 10 - year trailing P / E ratio and corporate profits as a proportion of GDP) market prices are well below average and approaching all time lows (See Future Blind «s post Market Valuation Charts prepared in October last year when the S&P 500 was around 1160).

The second valuation step is to compare KO's price to its «normal» long - term average P / E ratio.

The second valuation step is to compare Medtronic's price to its own long - term average P / E ratio.

Although it's a small sample, low valuation, coupled with economic data confirming a substantial contraction in the labor market, has offered longer - term investors very strong average returns.

The second valuation step is to compare JNJ's price to its «normal» long - term average P / E ratio.

GMO publishes a monthly asset class forecast that mainly assumes that in 7 years time valuations return to long term averages.

So 9 % is a very conservative planning assumption at current valuations, is beneath the TSE / TSX index's long - term average return, and an acceleration in inflation is not required to achieve such return.

«Even with small caps lagging, the valuations in our view are still well above long - term averages,» says Kate Warne, investment strategist at Edward Jones in St. Louis.

The second valuation step is to compare LAZ's price to its own long - term average P / E ratio.

The company's cash flow is a better metric to use for profit and valuation, and investors are paying much less for cash flow now (even though it's very likely to rise considerably in the near term) than they've been paying, on average, for the last three years.

The second valuation step is to compare CAH's price to its own long - term average P / E ratio.

Long - term investors understand that the most reliable way to generate above - average returns is to be a long - term investor in above - average businesses purchased at sound valuation.

Rather than rely on past averages to forecast future returns, we use a building - block approach that adds current yield, likely long - term growth in income, and some mean reversion in valuation multiples to create forward - looking returns.

Use the value strategies of time and long term investing, valuation timing, margin of safety, portfolio rebalancing, and capital preservation to lower your risk and improve your probability of above average returns.

The second valuation step is to compare AT&T's price to its long - term average P / E ratio.

The second valuation step is to compare MAIN's price to its «normal» long - term average P / E ratio, shown by the blue line.

Nevertheless, this post is not focused on the absolute valuation and we'll discuss more in another post where you will require to understand a lot of complex terms like future free cash flow projections, discount rate (weighted average cost of capital - WACC) etc to find the estimated present value.

If today's Shiller P / E is 22.2, and your long - term plan calls for a 10 % nominal (or with today's inflation about 7 - 8 % real) return on the stock market, you are basically rooting for the absolute best case in history to play out again, and rooting for something drastically above the average case from these valuations.

For valuation purposes, I'll still assume we'll see an eventual convergence towards CRH's long - term margins of almost 10 % — so let's utilize an average 7.8 % margin here.

My last valuation of $ 4.0 billion, based on a total average 1.94 % on current AUM, looks perfectly achievable longer - term.

While sentiment was consistent with a major top and valuations, on average, were definitely high enough to usher in a major top, an end to the long - term upward trend was not signaled by several important indicators.

Juicy Excerpt: For an index to provide an average long - term return of 6.5 percent real, it must provide returns far above that at times of low valuations and far below that at times of high valuations.

The orange earnings justified valuation PE line represents the longer term historical PE ratio of 15, which is generally accepted as fair value for the average company and approximates the PE of 16 that Prof. Shiller embraces.

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

[If you recall, I'd previously noted i) a marked sector correlation between market cap & price / book (P / B), and ii) a specific market cap which signaled a distinct step - up in terms of valuation: 100 mio + market caps clustered» round an average 1.02 P / B, a large premium to the avg.

In terms of valuation, the more metrics you employ the better (just average them out).