Posts filed under “Valuation”

Andreessen Horowitz: U.S. Technology Funding

What’s going on in the public markets? What are all these so-called “unicorns”? What’s going on in venture capital?

“This time is different.” It is different. Because it’s always different…

Category: Technology, Valuation, Venture Capital

The Sharing Economy

Bloomberg Briefs: Nowadays, it’s hard to find more exuberant sharing-economy enthusiasts than investors. Uber, the ride-hailing company, is raising $1.5 billion at a valuation of $50 billion — theoretically making the six-year-old business the equal of Target and Kraft Foods. Airbnb, for home sharing, is valued at $20 billion. Uber competitor Lyft is valued Uber…Read More

Category: Digital Media, Technology, Valuation, Venture Capital, Web/Tech

Are US Stocks Overvalued?

This is just such an information rich chart, even if you are not a CAPE fan:   click for ginormous graphic Source: Bloomberg  

Category: Investing, Markets, Valuation

Inflation vs. P/E Model (1965 to Present)

  Relative to this morning’s column, consider this discussion about inflation and valuation: From Savita Subramanian: Inflation: The level of inflation also matters, and historically has had a strong relationship with PE multiples. Chart 2 below indicates that the relationship may not be linear, but many have simplified this relationship to the “Rule of 21”…Read More

Category: Inflation, Investing, Valuation

Embedded Predictions and the Valuation Debate

      Traders returning to their desks after the long holiday weekend will be greeted by the continuing Greek saga, a guessing game about when the Federal Reserve will raise rates and a megamerger in the cable industry. But the debate I am much more interested in is the one taking place about U.S. stock valuations. It is…Read More

Category: Investing, Valuation

Stovall: Inflation/Rate Adjusted Stocks Don’t Look Expensive

  “When an inflation overlay is included, P/Es don’t look as expensive” -Sam Stovall   The U.S. equity strategist at S&P Capital IQ suggests that one must include low yields and low inflation rates when determining if stocks are expensive. The chart above shows average price-earnings ratios for the Standard & Poor’s 500 Index since…Read More

Category: Inflation, Valuation

Cullen Roche vs Andrew Smithers on Tobin’s Q

I love this debate between the idea of Tobin’s Q-Ratio as th be all for valuation analysis. It is embodied between Smithers & Co. quoted in this scary BBRG article and Pragmatic Capitalism’s Cullen Roche. Here is PragCap: “Better yet, look at the number of times this ratio has been cited during the most recent bull market…Read More

Category: Bad Math, Data Analysis, Investing, Valuation

Bargains Reside Beyond U.S. Borders

Source: BlackRock

Category: Markets, Valuation

Vanguard CEO: “We want to drive costs even lower”

“We are not done on the cost side . . . We think we need to keep raising the bar on that.” So says Bill McNabb, CEO and Chairman of the Vanguard Group. The firm, managing over $3.1 trillion dollars in client monies, has long been known for its obsessive focus on keeping costs low….Read More

Category: Corporate Management, Investing, Podcast, Valuation

Does Record Picasso Sale Signal a Bubble?

The headlines screamed across the Web yesterday: Picasso’s Women of Algiers smashes auction record. Two Artworks Top $100 Million Each at Christie’s Sale. Picasso Painting Sells for $179.4 Million; Sets Auction Record. The record for paintings was joined by a record for a sculpture, when Alberto Giacometti’s “Pointing Man” was purchased by an anonymous bidder for $141.3 million….Read More

Category: Bubbles, Sentiment, Valuation