Sentences with phrase «valuation ratio indicates»

A number of structural reasons — for example, different accounting conventions — can explain why a particular valuation ratio indicates different relative valuation levels from one market to another.

Secondly, even though one valuation ratio indicates that a stock may be undervalued (or overvalued) at any given time, always look at other valuation ratios to back this up.

Not exact matches

The median P / E ratio has fallen from about 19 times earnings last year this time, which indicates a clear improvement in the valuation of the typical stock in the index.

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.