Sentences with phrase «valuation metrics such»

Our approach attempts to mitigate risk by focusing on traditional valuation metrics such as price / earnings (P / E), price / sales (P / S) and buying small, overlooked companies at a discount to our estimates of their intrinsic value.

There are some stocks which may appear cheap because they are trading at a low valuation metrics such as PE, price to book value ratio, cash flow ratio etc..

There are many forms of valuation metrics such as Price Earnings Ratio (PE), Enterprise Value / EBITDA, Enterprise Value / Sales, Price to Book (PTB).

The article cites comments by columnist Mark Hulbert, who refers to valuation metrics such as P / E, price - book, price - sales and price - dividend ratios as weak indicators of market tops but adds that we ignore them «at our peril, since it's also true that almost all bull market tops in history... Read More

We do this using valuation metrics such as the Price - to - Earnings Ratio, Price - to - Book Ratio, or Earnings Yield.

Valuation metrics such as the price - to - rent and price - to - household income ratio suggest that homes are more than 60 % overvalued nation - wide.

We do this using valuation metrics such as the Price - to - Earnings Ratio, Price - to - Book Ratio, or Earnings Yield.

Some analysts link criteria to performance and / or valuation metrics such as earnings - per - share growth (EPS) or the price - to - earnings (P / E) ratio.

Look at valuation metrics such as price - to - earnings and price - to - book, and compare those valuations to comparable firms.

Not exact matches

Third, academic research has found that valuation metrics, such as the earnings yield (E / P) or the CAPE 10 earnings yield, and valuation spreads have predictive value in terms of future returns.

While a number of simple measures of valuation have also been useful over the years, even metrics such as price - to - peak earnings have been skewed by the unusual profit margins we observed at the 2007 peak, which were about 50 % above the historical norm - reflecting the combination of booming and highly leveraged financial sector profits as well as wide margins in cyclical and commodity - oriented industries.

Rapid share price growth and high valuations based on standard metrics, such as price / earnings ratio or price / sales, characterize a tech bubble.

According to one such globally accepted metric for oil industry giants — enterprise value vs. earnings before interest, tax, depreciation, and amortization (EBITDA)-- in order for Aramco to reach a company valuation of $ 2 trillion, it needs to report an EBITDA of around $ 130 billion next year, according to Reuters estimates.

There is some downside, such as the fact that the company is solely dependent on the oil and gas industry, whereas some peers have also diversified into high - margin industrial and specialty products, but shares trade at comparable valuation metrics to peers nonetheless.

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).

Gray and Carlisle do extensive back testing on virtually every valuation metric under the sun, including industry standards such as price / earnings («P / E»), price / sales («P / S») and price / book value («P / B»).

I don't worry too much about the particulars such as which valuation metric is best.

While other approaches are more appropriate for industry - specific analysis, such as price - to - book for banks, the P / E is a widely - accepted metric in assessing the overall stock market's valuation.

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).

Popular metrics of aggregate market valuation, such as Wilshire Total Market Index to U.S. GDP, price to forward earnings ratio, price to book value ratio, price to cash flow ratio, cyclically adjusted price to earnings ratio (CAPE), the ratio of annual forward dividend to price (dividend yield), indicate the U.S. stock market is overvalued by between 10 per cent and 60 per cent.

(A value trap is a stock that appears to be cheap by traditional valuation metrics, such as price - to - book.

When investors are buying stocks indiscriminate of things such as a company's earnings or basic valuation metrics, it's a good sign that we're in bubble territory.

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.

The bottom line is that all valuation metrics are blunt instruments and should be viewed as such.