Sentences with phrase «valuation multiples»

About 80 percent of first - year returns typically come from a change in valuation multiples and 20 percent from a change in fundamentals.

We believe that the company can command an even higher valuation multiple in the years ahead that would bring it more in line with other high quality, financial - technology service providers.

That implies some fairly steady downward pressure on valuation multiples.

Even if the startup does find a buyer, these kinds of companies often have low valuation multiples, making them less attractive venture capital investments.

The first is that rising valuation multiples have been the nearly singular cause for higher prices over the last few years.

During multi-year periods when valuation multiples expand, we may struggle to keep pace with the market.

The price - to - earnings ratio, or P / E ratio, is an equity valuation multiple defined as market price per share divided by annual earnings per share.

The company's current valuation multiple appears to account for potential risks in the business.

During multi-year periods when valuation multiples expand and growth stocks are in favor, it seems clear that we will struggle to keep pace with the market.

«These metrics suggest income statement momentum and valuation multiple expansion,» she says.

The speculative component rose above 100 percent during the 2008 - 2009 bear market, when the drop in valuation multiples made up the entire loss in share value, on average.

As you can see below, these forward valuation multiples make the stock look attractive compared to the kind of multiples it's traded at in recent years.

Additionally, we think of value as a forward - looking concept, as opposed to a static or backward - looking valuation multiple.

For above - average volatility (the two bottom plots) the typical valuation multiples are between about 10 times and 15 times the 10 - year average of trailing real earnings.

Investors don't typically wait for high levels of inflation before adjusting stock valuation multiples lower.

I track valuation multiples and margins at sector levels over a long period of time.

I try to keep cash levels based on risks associated with the current absolute valuation multiples as well as my assessment of sustainability of current margins.

It is clear that the bulk of the gains over the past few years have come from higher valuation multiples.

European value stocks have kept pace broadly with the other benchmarks in the past few years thanks to essentially one force alone — rising valuation multiples.

In contrast, high valuations have been associated with poor average returns, and a low probability of further increases in valuation multiples.

The composite is constructed using four valuation metrics, each measuring the relative valuation multiples of the long portfolio (value) relative to the short portfolio (growth): Price to book value (P / B), price to five - year average earnings (P / E), price to five - year average sales (P / S), and price to five - year average dividends (P / D).

However, that assumes everything goes well and the stock's lofty valuation multiple remains steady, which is far from a guarantee.

We track these and have found that for private company exits, we can find about 35 % with valuations for private companies (real or rumored) and make these available on our private company valuation multiple search tool.

AUM trends, or the stability of Argo Real Estate Opportunities Fund (AREO: LN), might present risk (s) to this valuation, but one could also speculate on a higher valuation based on share buybacks, rising AUM & margins, and a higher market valuation multiple.

Damodaran shows in an unpublished study of 550 equity research reports that EM, along with Price / Earnings and Price / Sales, were the most common relative valuation multiples used.

General Mills» $ 40 - per - share or $ 8 - billion acquisition offer represents a premium valuation multiple at 25x last - twelve - months or 22x including synergy expectations, the analyst said.

Spotify is in a unique situation, having achieved a so - called «unicorn» valuation multiple times over, while also being tied to the music - listening habits of millions of people across the globe.

The more corporate earnings grow, the higher the stock market if valuation multiples stay the same.

The green, orange, yellow, and red lines represent the projected total returns for the S&P 500 assuming terminal valuation multiples of 20, 14 (average), 11 (median) and 7 times normalized earnings.

However, with Welltower trading near all - time highs and many bond - like stocks trading at premium valuation multiples relative to history, short - term, more risk averse investors need to keep in mind the risk of a short to medium - term correction if rates do begin to rise and cause capital outflows for bond - like stocks.

Should we fear the lofty valuation multiples, or should we fear the CAPE ratio itself, because of its notorious unreliability in picking market peaks and troughs?

Exit Options: categories of likely buyers, rationales, list of specific likely buyers and comparables with valuation multiples

Given its current valuation, comparable valuation multiples and the very high bar for revenue growth required, it looks like Dropbox is overvalued.

As it happens, recently elevated margins are embedded into nearly every earnings - based valuation multiple, including the Shiller CAPE.

Part of the reason why elevated valuation multiples have not yielded to gravity may be that they are inadequate metrics for today's environment.

A common valuation multiple, enterprise value to earnings before interest, taxation, depreciation and amortisation (EV / EBITDA) ignores those capitalised costs.

In addition, deleveraging reduces the risk level and should lead to increased valuation multiples.

Valuation multiples tend to increase when confidence in corporate earnings certainty and growth increases.

We've also seen the P / E valuation multiple slowly start to increase for the S&P 500 as well.

In that case, the stock market would still be expected to post a total return of roughly zero, even if valuation multiples only revert partially toward historical norms.

Despite promising growth prospects in the Permian and other efforts supporting the dividend and the potential for share buybacks, a widening valuation multiple at Chevron Corporation (NYSE: CVX) is not justifiable, according to «Further Upside For Chevron Is Unjustified, BMO Analyst Says» by Shanthi Rexaline.

While earnings are required in order to produce future cash flows, the fact is that S&P 500 earnings have historically been more volatile than stock prices themselves, and even smoothed or «forward» earnings measures produce valuation multiples that are rather weakly correlated with actual subsequent market returns.

It doesn't matter whether one looks at basic measures such as median valuation multiples over the past (bull market) decade, or whether one uses a more complex discounted cash flow model.

This despite the fact that the 2007 peak reflected rich valuation multiples against earnings that were themselves inflated by abnormally elevated profit margins.

Cautious investor sentiment should keep valuation multiples in check, particularly in the U.S., we believe.

When you're in this type of market, I think the best investing style is buying stuff with a few catalysts, that are dirt dirt cheap (cause then you can still get legit valuation multiple expansion), and have slightly lower market exposure.

AT&T offers investors a rare mix of: Utility - like safety 5 % + dividend yield Double - digit expected total returns Undervalued relative to historical valuation multiple This has created a potential buying opportunity at AT&T.

While that's not a bad total return projection for a high quality business, DLR's current valuation multiples give me pause.