Practical analysis for investment professionals

valuations


For Better Valuations, Avoid These Five Behavioral Mistakes

Investment strategist Michael Mauboussin explains how investors could generate more accurate valuations and improve their investment decision making by avoiding common behavioral pitfalls.

Bearish on a Bull Market: Central Banks and the S&P 500

What explains the recent surge in the S&P 500 index? We asked CFA Institute Financial NewsBrief readers what they thought was responsible for the strong performance.

Weekend Reads: Efficient Markets, Enron, and Dilbert

Investors who are cautious on US equities today are quick to point to the CAPE, or Shiller P/E, as clear evidence of an overvalued stock market. Market bulls prefer to look forward and the promise of strong earnings, and they've been richly rewarded for their optimism over the past two years.

Inditex Is Priced for Perfection

This article is meant to illustrate how, depending on the price, the stock of a great company may not be a great investment.

How Well Does the Stock Market Discount? Dell as a Case Study

How accurately does the stock market discount the value of a business based on future streams of actual net income, plus an estimate of terminal value? Dell provides a real-world example.

Take 15: Making the Case for Equities (Video)

Jeremy J. Siegel asserts that historical asset class returns, the prospect for continued strength in corporate earnings, and current valuation levels all support the case for investment in equities.

Asness: Shiller P/E is Signaling Risk of Another Lost Decade for US Stocks

With the Shiller P/E for the S&P 500 currently standing at a 21.5 (approximately 30% higher than its long-term average), many value investors, including Cliff Asness of AQR Capital Management, have adopted a cautious stance toward US stocks.

Aswath Damodaran: How Does Growth Investing Measure Up?

In a recently published paper, noted valuation authority Aswath Damodaran examines the discipline of growth investing and, in so doing, challenges the notion that growth investors are simply risk seekers who ignore valuation.



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