Sentences with phrase «valuation ratio means»

A high loan - to - valuation ratio means that a mortgage scheme is more vulnerable to changing market conditions, such as a downturn in the property market.

Let's stop for a moment and think about what various valuation ratios mean.

Not exact matches

Valuation ratios are increasingly subjective; they only mean something insofar as you know how the future will unfold, he contends.

That means that Snap stock will be insanely expensive: At a $ 24 billion valuation, Snap shares will have a price - to - sales ratio of 59, making it far richer than Facebook stock and other social media companies — and likely the most expensive tech IPO ever.

Finally, it doesn't matter if the low P / E ratio is related to the company or the industry, because a low valuation simply means the market does not believe in sustainable profit growth.

At its current valuation of ~ $ 67 / share, HLF has a price to economic book value ratio (price - to - EBV) of 1.2 That ratio means that the market expects only 20 % growth in NOPAT for the remainder of HLF's existence.

Grainger's 10 - year average P / E ratio has been 19.0 (see the dark blue box in the right panel), meaning that the market has tended to value it about 27 % higher than the historic valuation of all the companies at 15.0.

It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio.

Firms of growth stocks all trade at high valuation levels, meaning they usually have high price - to - earnings (P / E) ratios.

Cardinal's 10 - year average P / E ratio has been 16 instead of 15, meaning that the market has tended to value CAH a little higher than its historic valuation of all the companies.

For instance, the blue dot on the value factor scatterplot suggests that prior to March 2016 the valuation level of 0.14 — meaning the value portfolio was 14 % as expensive as the growth portfolio measured by price - to - book ratio, and lower than the historical norm of 21 % relative valuation — would have delivered an average annualized alpha of 8.1 % over the next five years.

The Q Ratio and Market Valuation bit.ly / tkbOnp Good article going over the Q ratio, what it means, how to calculate & forecasRatio and Market Valuation bit.ly / tkbOnp Good article going over the Q ratio, what it means, how to calculate & forecasratio, what it means, how to calculate & forecast $ $

The P / E ratio of 15 is an extremely important and rational valuation reference if you understand the significance of what this metric really means.

A high loan - to - valuation ratio may mean high investment risks for you.

Valuations like P / E ratios are relevant to long - term returns but don't mean much when facing extreme short - term volatility.

Using LINEST, you can calculate the effect of MEAN REVERSION when you ignore the effect of valuations, You take the ratio of the relevant sum of the squares totals: sstotal = ssreg + ssresid.

Eventually this means that the momentum component may generate bubbles and crashes in the short and medium run, nevertheless the valuation ratio remains a good reference point of future long - run returns.

Historically it has been mean reversion of valuation ratios like price to book and price to earnings which have had the greatest effect on long term equity returns.