Aswath Damodaran began chapter four of his book, "The Little Book of Valuation: How to Value a Company, Pick a Stock and Profit," with this challenge: "If Dell (DELL) is Trading at 17 Times Earnings, ...
The PE (price to earnings ratio) of a stock is 18. Is that cheap or expensive? Well, it depends. On what? Many things! Welcome to the world of relative valuation. The findings from research done a ...
Valuation is, of course, fundamental to investing. Knowing what an asset is worth and the drivers of value is a pre-requisite for intelligent investing (as opposed to speculation). In general, there ...
The DCF model follows the principle that a firm’s “true” value today is equal to the sum of all its the future free cash flows (FCF) it will make in the future (to infinity). Since the hardest part of ...
Relative valuation offers the benefit of simplicity in valuing a company, but in this simplicity lies danger. Discover the caveats inherent to this methodology, and see if IBM shares are in fact ...
Forbes contributors publish independent expert analyses and insights. Dan Irvine is an investment manager covering market trends. When assessing investment opportunities, one crucial consideration is ...
ArcBest has a long history and has undergone a significant business transformation over the past decade. The company has successfully shifted its strategy to become an integrated logistics provider, ...
(MoneyWatch) Sector or asset class rotation is a strategy many active managers employ in an effort to enhance performance. As a strategy, it certainly has appeal -- assuming you can identify the ...
Charting the outlook for value vs growth stocks + wider stock market implications. Value vs Growth Stocks: new lows, further extremes. (p.s. skip to the end if you just want the bullet point summary + ...