Sentences with phrase «valuation multiples contract»
Not exact matches
Stocks can see their PE multiples expand and contract in a manner that has almost nothing to do with changes in EPS, which makes looking at these metrics a poor indicator of valuation or future returns.
With low valuations, investors have enjoyed the prospect for high expected returns even if valuationscontracted further, and also faced a high probability that a future increase in P / E multiples would add further to their returns.