valuations Tag

Uncharted Territory for Stock Valuations

17 Apr, by Bryce Coward, CFA in Markets, Portfolio Management

Another month and another new high in equity valuations, at least relative to sales. Indeed, the median company in our developed world index (which covers the top 85% of companies in each country) just achieved a price to sales ratio that eclipsed the 2000 peak....

Getting Our Arms Around European Equity Valuations

16 Mar, by Knowledge Leaders Team in Markets

With the falling Euro and the recent launch of QE in Europe, European equity markets have come into the spotlight for many investors. Today, we wanted to take a look at European equity valuations in an absolute sense as well as on a relative basis...

Stocks Selling at a Discount to Book Value is a Thing of the Past

10 Feb, by Knowledge Leaders Team in Markets

We suspect pegging short-term interest rates at zero for years has something to do with the fact that, for as far back as we have data, there have never been fewer stocks selling at a discount to book value. Importantly, this is a global phenomenon....

Navigating High Stock Valuations in a Deflationary World

14 Jan, by Knowledge Leaders Team in Economy

As we highlighted yesterday, stock valuations jumped again in December to another cycle high. As the first two charts show, the cyclically adjusted P/E multiple has only been higher on several occasions and the median stock is trading at a record price to cash flow...

Stock Valuations Jumped Again in December

13 Jan, by Knowledge Leaders Team in Markets

By almost any measure stocks are pricey relative to history. We’ll save the theoretical debate about whether such high valuations are justified for another post, and will instead illustrate with charts just how far valuations have come over the last five years. The Shiller P/E...

2 Industries With A Large Disconnect Between Growth And Price

21 Aug, by Knowledge Leaders Team in Uncategorized

When it comes to stock valuation, it makes sense that the fastest growing industries should command the highest valuations. And as we will show, in general this holds true. However, there are always exceptions and this is where one can find interesting mispricings. Let’s set...