What I believe these graphs illustrate is the reality that there is not a direct impact on
valuations based solely on interest rates.
Not exact matches
If you're betting on a tech stock
solely based on the company's
valuation, you could be setting yourself up for disappointment if the stock's value takes a dive.
Value strategies that buy (sell) cheap (expensive) firms from groups matched on the quality dimension significantly outperform value strategies formed
solely on the
basis of
valuations.
Of course, we wouldn't
base our decision
solely on this one formula, but with a more detailed
valuation based on a much broader look into the company.