valuations Tag

Median Stock Valuations Remain Near Record Highs

10 May, by Knowledge Leaders Team in Uncategorized

Measuring the valuation level of the median stock in an index can help mitigate the market-cap-weighted bias associated with many index level valuation statistics. This is important because index level valuations that are heavily influenced by a handful of large companies can give a misleading...

Cheap Cheap? Pinpointing Value Among MSCI World Regions

16 Apr, by Knowledge Leaders Team in Uncategorized

In our fundamental analysis, we have developed a system by which companies receive both a quality and a valuation score.  The valuation component is comprised of various different metrics that compare the company’s valuation to items that include, but are not limited to, the benchmark’s...

Median Stock Valuations Expand Again to at Least a 15 Year High

10 Apr, by Knowledge Leaders Team in Uncategorized

Many market commentators have recently been claiming that stock valuations are ”fair” or ”average” and are basing these statements primarily on forward P/E ratios derived from market cap weighted indices like the S&P 500. At least two problems with this methodology come to mind....

What do Peak Valuations of the Last 15 Years Look Like?

10 Dec, by Knowledge Leaders Team in Uncategorized

We’ve been highlighting recently the current seemingly excessive level of stock valuations (here, here & here), so we thought it only fitting to dig a little deeper into the puzzle. Below we show pictures of the five sectors of the world stock market whose median...

Finding Cheap Stocks Isn’t Easy These Days

06 Nov, by Knowledge Leaders Team in Uncategorized

Earlier today we highlighted how overbought the Telecom sector was, so we thought it only fair to mention that by some valuation metrics it is also the cheapest sector, on average. Below we show two tables of valuation breadth metrics....

Employment in the US & Stock Valuations

23 Oct, by Knowledge Leaders Team in Uncategorized

For the last 40 years, the employment to population ratio has been well correlated with equity valuations.As would make sense, when more people are working, income is higher, demand is more sustainable and investors rationally capitalize corporate earnings at a higher rates.  When employment rates...