Sentences with phrase «year average pe»

We did an eight - year average PE test in the book, and it did seem that there was a small advantage over the single - year metric.

Not exact matches

We'll predict that in 10 years, FAANG Inc will sell at a PE of 25, down from 30 but still substantial, and still forecasting well above average profit performance.

Our 2013 year - end target of 1600 implies a 10 % price return, where most of the appreciation can be attributed to earnings growth of 7 % next year, along with modest multiple expansion from 14.2 x to 14.7 x on trailing earnings, still below an average PE of 16x.

6 years The average holding period of PE - backed companies in 2014 increased from 5.5 years in 2011, according to data company Preqin.

«Despite entering the latter years of a typical expansion and high margins vs. history, we now think the trailing S&P PE should average 17 vs. 16 until elevated recession risk returns.»

This analysis strongly confirms the downward trend of the average ten - year forward real returns from the cheapest grouping (PEs of less than six) to the most expensive grouping (PEs of more than 21).

The cheapest quintile had an average PE of 7.7 with an average ten - year forward real return of 11.4 % per annum, whereas the most expensive quintile had an average PE of 23.4 with an average ten - year forward real return of only 3.8 % per annum.

At my time of purchase the Price / Earnings (PE) ratio was 16.75, below the 5 year average of 18.18.

In essence, PEs based on rolling average ten - year earnings were calculated and used together with ten - year forward real returns.

Still, CAT is a dividend machine that is currently yielding a high 5.04 % and a current PE of 12.7 which is well below its five year average.

While we don't make investment decisions based on how the market as a whole is trading or even the underlying sectors, we do think it is notable that today approximately 80 % of the fund holdings are members of the Technology, Industrials, and Consumer Discretionary sectors and that each of these sectors are currently trading below their average PE ratios over the past 30 years.

Those who think the market is overvalued tend to point out that the current PE of 21 times is more than 30 % higher than the average PE of 16 to 17 times that has been observed for the past 60 years.

It's interesting that historically, a Shiller PE above 24 (where it is presently) is also associated with average subsequent 10 - year total returns of 3.5 % for the S&P 500 (see Anatomy of a Bubble).

We prefer to use the PE 10 instead, which is calculated by dividing a company's stock price by its average earnings over the past 10 years.

These companies have increased their dividend for at least 15 years and have a lower than average price to earnings (PE) ratio, a higher operating margin, a low price to book, a reasonable dividend yield and payout ratio.

Furthermore, I personally prefer Shiller's 10 year smooth average of PE.

Recognizing that dividends are a poor measure of a company's cash flows, Shiller and Campbell used a ratio of real (net of inflation) market price relative to 10 - year average of real earnings — which they called the cyclically adjusted PE, or CAPE, ratio — to reach the same conclusion.

But when the PE 10 is low the expected rate of return for the next 20 years is higher than average.

In simplified terms, if PE 10 is high the expected rate of return for the next 20 years is lower than average.

This is how the cyclically adjusted PE -LRB-» CAPE») is calculated and when its current value is compared with long - term average, using the geometric means of EPS and cyclically adjusted PEs, 6 it shows that the market is 37.7 % overpriced using 10 years of earnings» data and 45 % if 20 years are used.

So, according to Cliff Asness, despite the recessions in 2000 - 2002 and 2008, the real ten - year average of earnings used in the Shiller PE is slightly above its long - term trend.

If you're using the average of several years, as the Shiller PE does, wouldn't it be best to include unusual items, and to assume that history is better than nothing in trying to predict the frequency and magnitude with which unusual items will hit the company in the future?

But my point is since real rates are significantly below average and are artificially suppressed, the Shiller PE may do a good job of normalizing earnings over ten years, but not normalizing real interest rates (there's nothing normal about 0 % real yields!).

Model 3 uses price divided by average 10 - year real earnings, also called the cyclically adjusted PE ratio, or CAPE, to model expected returns.

Price earnings ratio is based on average inflation - adjusted earnings from the previous 10 years, known as the Cyclically Adjusted PE Ratio (CAPE Ratio), Shiller PE Ratio, or PE 10 — FAQ.