While value stocks, by definition, will trade at a lower
valuation than growth stocks, the valuation spread moves over time.
While value stocks, by definition, will trade at a lower
valuation than growth stocks, the valuation spread moves over time.
Not exact matches
A
stock's PEG ratio — its price - to - earnings ratio divided by the
growth rate of its earnings — often is considered a more complete assessment of a company's current
valuation than a P / E ratio because it takes earnings
growth into account.
We think they're attractive because they have faster rising earnings, higher dividend yields and lower
valuations than U.S.
stocks, and they can benefit as global
growth accelerates.
The average member of this group should grow by about 11 %, far lower
than the most expensive
stocks» 20 %
growth rate, but at less
than half the
valuation.
We consider the starting point
valuation of value
stocks (or any style factor, for that matter) to be a far more accurate predictor of future returns
than the outlook for economic
growth.
By pretty much all measures, it offers access to higher
growth rates at lower
valuations than the average European
stock fund does.
In Dividend
Growth Investing Lesson 11:
Valuation, we learned that overvaluation means that a
stock is selling for more
than it is worth.
We consider the starting point
valuation of value
stocks (or any style factor, for that matter) to be a far more accurate predictor of future returns
than the outlook for economic
growth.
The
valuation is higher
than most industrial
stocks because of a better
growth outlook, not operating performance.
The next reason I find this interesting is because the
valuation standard for a high -
growth stock like Starbucks is somewhat different
than a low or average grower like we saw previously.
ROGS seeks to track an index that is designed to provide the
growth potential of small - capitalization
stocks with significantly better
valuations and less volatility
than passive capitalization - weighted indexes.
The unexpected happens regularly as
growth stocks go higher
than anyone believed possible but the early buyers and bear markets go deeper
than anyone thought possible because of fear of loss begins overriding any fundamental
valuation.
DIS sports much higher dividend
growth (as I pointed out in the article and
valuation analysis)
than many other
stocks with higher yields.
But rather
than avoid the US, or agonise over the timing of a potential buy, I think it presents the ideal opportunity to slowly but surely average into high quality US
growth stocks which have already (and / or perhaps will still) suffer a temporary share price /
valuation setback.
In short, depending on the time span, nearly one - third to one - half of the long - term return on
stocks comes from sources other
than dividend yield, such as inflation,
growth in dividends, and changes in
valuation levels.
Everywhere I look, I see better
growth, better demographics, better government finances, lower debt and no currency debasement... And all this for
stock market
valuations that are similar to / cheaper
than Western markets.
While that's not a terrible expected return, it's also far lower
than this high - quality small cap dividend
growth stock can return and has in the past, when purchased at more attractive
valuations.