No Matter How You Slice It, Stocks Everywhere Are Just Downright Expensive, Especially in DMMarch 09, 2015
It’s no secret that we think stocks are expensive. Indeed, over the last few months we’ve written extensively about what we think are high valuations for stocks everywhere. See Are EM Asia Equities Really That Cheap?, Navigating High Stock Valuations in a Deflationary World, Valuation Update: Stocks are (Still) Expensive Everywhere, Stocks Selling at a Discount to Book Value is a Thing of the Past, and Stock Valuations Jumped Again in December.
Along those same lines we thought we’d provide an update on valuations with data through February, only we’ll take a slightly different tack. In this post we will show stock valuations from three different perspectives:
- Median price to cash flow based on trailing data
- Normalized median price to cash flow based on the five year average cash flow
- Forward market capitalization weighted price to cash flow
Normalized Median Price to Cash Flow
Forward Cap Weighted Price to Cash Flow