Several excellent articles on
what valuation metrics are useful.
It is the analysis of the COMPANY that determines
what valuation metric is appropriate for a specific stock - the company's growth prospects, its stability, its leverage, etc..
Not exact matches
«
What I see a lot of the time is that founders are focused on valuation and vanity metrics rather than thinking about what's going to be best for the business long - term,» he s
What I see a lot of the time is that founders are focused on
valuation and vanity
metrics rather than thinking about
what's going to be best for the business long - term,» he s
what's going to be best for the business long - term,» he said.
I don't know
what to choose (yet) as a better
metric but I've begun studying various
metrics to work out a personal «
valuation index».
If this type of option is completely off the table, you're basically just left with a situation where it's your negotiation skills vs the remaining manager, and that (assuming you have little to no regard for anything but making the most money from the deal), becomes much more like a poker game of trying to work out which
valuation metrics they will be responsive too,
what weaknesses you feel they have and hammering away at them as hard as possible while trying to not show any of your own weaknesses.
Although the 2015 market presents nothing quite so drastic, there are still companies trading at
valuations far in excess of
what is merited when you take a deep look at the growth projections, balance sheet, and historical
valuation metrics.
But to close I will say, look at a full range of
valuation and performance
metrics when buying a stock, and consider the industry dynamics to understand
what matters most given the maturity of the industry.
The Fund's investments are selected using a strong
valuation discipline based on industry specific
metrics, to purchase
what the Fund manager believes are well - positioned, cash - generating businesses run by shareholder - oriented management teams.
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.
My analysis shows a deeply undervalued stock, which is actually in line with
what the basic
valuation metrics indicate.