In terms of relative valuation these days, large-caps are historically quite cheap, versus small-caps.
However, the focus here is more on its relative valuation versus Sun Healthcare.
Also, according to JPMorgan equity strategist, the relative valuation of equities is much more attractive when compared to bonds.
On our relative valuation tables, France is looking good trading at 5.4 times cash flow and 1.54 times book value.
In fact, we believe Best Buy should continue to trade at a lower relative valuation versus the group and the market.
The semiconductor and equipment industry normally trades at a premium to the market, when measured in terms of the relative valuation of risk-adjusted EVA performance.
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Collins may also be comfortable with the untapped potential in the Chinese population and the relative valuation of a company like Netease to its closest American Internet peer.
But in this sort of relative valuation scheme lurks madness.
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Any exchange rate is a relative valuation of two currencies.
But if company B with weak financials is trading for 100x revenue, company A with the superior fundamentals is trading for 150x revenue, so you get this whole relative valuation game.
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Many other positive feedbacks such as the wealth effect, relative valuation methods, and the increased ability to borrow against inflated asset prices operate in financial bubbles and bull markets.
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In none of the categories has it surpassed its relative valuation peak from 1980, but we are getting close compared to the median family income and the price of industrial metals.
While DELL is not on my list of favorite speculative buys, I think its low relative valuation leaves room for investors who like the story to speculate in a move to the mid to high teens.
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And at 14 times earnings, Penney's stock offers a pretty attractive valuation relative to the average industry multiple of 16 times earnings.
Under these conditions, equity is overpriced relative to a valuation which fully accounts for the conflicts of interest between minority and majority investors.
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"Given the strategic merits of the SoftBank transaction, the sales and negotiation process overseen by the board, the strength of the valuation relative to precedent transactions, and the market reaction, a vote for the transaction is warranted, " ISS said.
What we find when we break up the various factors to examine them individually is that growth matters for stocks, but that its main effect is not in the total valuation of stocks, but in their valuation relative to bonds.
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Snowling ticks off other advantages for Sallie: low interest rate risk (given government guarantees), profit growth expectations in the 15% range, a rich return on equity (net income divided by average book value) of 38%, and a cheap valuation relative to history and the broader market.
Yet their valuation scores relative to the market range from a high of just the 52nd percentile for Xilinx down to the 7th percentile for Applied Materials.
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Additionally, you have to consider the valuation level of the market relative to profit margins.
We continue to overweight markets where credit spreads (sovereign yield spreads or CDS spreads) have declined relative to their two-year averages and where valuation ratios are cheap, including Germany, Austria, Italy, Portugal, and France.
As the name PRVit implies, we calculate separate scores on performance, risk and market valuation for each of 8, 000 global companies, and ranks them relative to the scores for all other companies.
It also includes the price-earnings ratio as a basic valuation measure, the earnings growth rate to examine recent growth, and the 52-week relative price strength to highlight stock market performance relative to other companies.
But he adds that while these factors limit downside, they are offset by a valuation nearing 52-week highs, more challenging year-over-year comparisons, and greater relative exposure to discretionary spending.
Celgene, on the other hand, produced even more growth (innovation?) than was implicit in their 2005 valuation and so their return to investors over the next five years was outstanding (62% cum relative TSR).
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