Depressed valuations may help fuel acquisitions in specialty finance and asset management and brokerage, as buyers can pick up strong franchises at discount prices. But as buyers continue to struggle with their own business and past deals, M&A will probably remain flat for some time.
Bjorn Turnquist
157 quotes about valuations follow in order of popularity. Be sure to bookmark and share your favorites!
Valuations are getting stretched, especially in the technology sector. There may be some recovery in the economy, but the notion that it will translate into a big jump in corporate profits - the jury is still out on that.
Chuck Carlson
The market is not expensive in terms of valuations. You see a lot of improvement in the earnings quality.
Thomas Muehlberger
This may catapult the market higher, especially given the cheap valuations.
Tim Biggam
You're fighting to a stalemate between those people worried about interest rates and high valuations and those people excited about truly good earnings. I think you're going to be in a trading range for most of the summer until some event that we don't yet see takes us out of that - either the Fed stops raising (rates) or there's bad inflation news.
Chris Grisanti
Investors should be aware that biotech companies, especially in the stem-cell space, tend to move with the news flow, ... If there's bad news, like if Bush vetoes this bill as he promised he will, the prices could go back to more reasonable valuations.
Ren Benjamin
Chip stocks are testing trough valuations but if we have a seasonal pickup the downside is somewhat limited. But if you don't get that seasonal pickup, then chip prices drop and inventory gets dumped in the channel. That's when havoc ensues.
Patrick Ho
There's a more comfortable feeling across the market. People are starting to look back at fundamental valuations and that has pushed 'old economy' stocks back up.
Ian Harnett
A lot of the domestic-demand stocks, which have been our focus, are at elevated valuations now.
Malcolm Wood
There was a lot of trepidation on Monday after Friday's sell-off and when things didn't go from bad to worse, it has emboldened dip buyers to step in. But most of the investment community hasn't realized that the economy is slowing and that earnings are reflecting that and valuations are going to have to be adjusted.
Barry Ritholtz
All else being equal, we believe investors should use weakness to buy shares, as the business model of Apollo remains superior to its post-secondary peers and to many public companies with loftier valuations.
Jerry Herman
We're very bullish on emerging markets right now because of valuations, ... Valuations are so reasonable it makes sense to put money in.
Mark Mobius
[Nortel's warning is] bad news for the (telecom) hardware sector and will hurt the likes of Ericsson and Nokia, ... valuations are close to the bottom for this year.
Jason James
Valuations have gotten relatively lofty in all six publicly traded exchanges. Nasdaq is the best buy of the six. It's a cost-cutting story. The opportunity to take share should extend through 2006 and 2007.
Rich Repetto
We don't know how big the (Rita's) impact will be but the market is being quite rightly a bit cautious ahead of what is an unknown. It's not just the hurricane; U.S. rates are rising along with other different things, and valuations are just not as cheap as they used to be.
Adrian Darley
Valuations of stocks are still reasonably attractive. People are still of the view the rate increase cycle is drawing to an end.
Douglas Wright
The inventory buildup at Cisco has people worried about future technology spending and that's feeding through to the rest of the sector, ... Valuations are still very high in the tech sector so any bad news hurts.
John Forelli
Valuations for stocks are still high.
Jim Melcher
It's interesting to note that while per subscriber valuations have fallen for public (cable companies), they remain relatively strong in the private market.
Craig Moffett
I think it's a healthy correction, some valuations got a little high.
Henry Chan
H-share valuations are quite expensive and heavy profit taking will continue ahead of earnings announcements. Smart investors have already reduced their holdings in these stocks.
Antony Mak
I do think it's clear that people are starting to focus on earnings and when people are going to start showing earnings. Although Yahoo! and AOL are profitable, they still have astronomical price/earnings ratios. It's going to be a while before earnings catch up to valuations.
Dalton Chandler
Oil is down significantly, stocks are basically flat and bond investors are looking at overall valuations of assets and are perhaps doing a little bit of bargain shopping right now.
Don Kowalchik
S&P 500 valuations, by some measures, are near or at all-time highs.
Richard Bernstein
We are inclined to believe that the rise in U.S. small- capitalization stocks has gone beyond the point warranted by valuations, and have experienced a minor mania.
Gordon Fowler
Technology is very interesting, particularly the large caps, because valuations are said to be at 5 year lows. There's been a lot of chatter that 2006 might be their year because they've been low for so long.
Stephen Sachs
The established markets in Asia are getting very competitive, valuations and prices have come up. People have to go to the rest of the emerging markets like India and China.
Kelvin Chan
The bias is still to the downside because no one has spoken in terms of an improved spending environment. The [second-quarter] estimates were fairly high with double-digit earnings growth built into a lot of the models. Without spending picking up, we think estimates have to come down, therefore the valuations come down and the stock prices come down.
Romeo Dator
The overall industry is a boom industry. It has demographics and favorable growth prospects on its side, ... Valuations may get ahead of themselves sometimes but that's only a concern for the short term.
Dan Ahrens
In terms of thinking about market valuations, think, do I care? My goals are 10, 20 years from now, not now. If you have shorter-term goals, you should be aware that market valuations fluctuate wildly.
James O'shaughnessy
We attribute the movements to renewed interest in the group following a summer of doldrums and higher expectations for the gold price. We look to higher gold prices and stronger valuations associated with higher volatility.
Barry Cooper
There's more upside because valuations look good in Europe and earnings really are improving, but we do need to see a major breakthrough in the war in Iraq.
Teun Draaisma
I see no reason why we should see a break in this rise in the market. Valuations leave room for further price rises.
Boris Boehm
They've had a very good run, year-to-date, and we're probably selling into the strength. There's no indication that there's going to be the second-half pick-up that's currently priced into the valuations.
Romeo Dator
I saw valuations as a real issue back in April, but they're not an issue now, really. I'm quite optimistic on the market. Positive. Upbeat.
Tom Mcmanus
The extraordinary financial performance of conventional homebuilders in this economic cycle leads us to believe that there is a strong possibility that their stocks could be poised for record-breaking valuations.
Lawrence Horan
The reason companies want to go public now is that (luxury good stocks) are at record high valuations.
Claire Kent
Like all sciences and all valuations, the psychology of women has hitherto been considered only from the point of view of men.
Karen Horney
We've had a fantastic run. The fundamentals are improving, but maybe not at the right level for the valuations we're seeing.
Brian Alexander
The valuations for technology companies are very high. Why would you pay cash for that, why not pay with another inflated stock?
Ullas Naik
Equity valuations are still appealing. We think investors are too cautious.
Darren Brooks
I really think the leaders of this parade are the large-cap stocks. I think the valuations in the technology sector and small caps in particular are attractive enough and for the first time in a while are attracting money.
Mark Keller
We continue to struggle to find attractive valuations in the sector, and, in contrast to last October, we feel short term drivers are turning negative rather than positive.
Morgan Stanley
While it is not a superior refinery, WNR is improving its facility and the company trades at one of the lowest valuations in the group.
Paul Sankey
You had a lot of foreign deals come to the United States because the valuations on the Nasdaq are pretty good right now.
Jeffrey R. Hirschkorn
In the 1990s, Russian stocks traded at low valuations because everyone was worried about being robbed by the oligarchs. Now everyone is worried about being robbed by the government.
Martin Taylor
This is a very anemic recovery. It has a lot of problems with it, and we don't have dirt-cheap valuations. I firmly believe the bear market is over, but this is not going to be a roaring bull market, and I think we're going to see a lot of interruptions and halting and starting before we get a consistently better market.
Charles Pradilla
European markets still have a safety buffer from relative valuations that will protect equities from any downward pressure from rising interest rates.
Lars Kreckel
We are actually quite nervous that in some of these sub-categories, valuations are jumping back up to levels we have not seen since the bubble. Deals are more competitive that they've been in a while.
Michael Greely
We're in an environment where share prices are trading ahead of valuations.
Rob Mercer
Our biggest positive for 2006 is that inflation remains contained and that valuations for the first time in several years could really go higher. That could be more of the driver for the market in 2006.
David Chalupnik
Earnings are likely to continue to become more favorable, and I believe that will counteract the negative effect of rising rates to provide for higher stock valuations by year-end.
Robert Balentine
I think there's a little bit of negative sentiment in the market. Back-to-school sales at retailers were not especially great, and that put a little damper on things. People start focusing on valuations, which is an old story. But valuations are still, you know, pretty high.
David Braverman
The Internet hit so fast that what was new and unique one year became just so terribly old-hat the next year, ... Nowadays, college students are starting Internet companies with valuations in the billions of dollars. So we feel a little silly saying, 'Show us your cool home page.'
Chris Clark
Valuations remain a little stretched, and we could see some further weakness into the early part of the year.
Adam Adelman
The Nasdaq has been beaten up so much that there's room for a technical rebound if not more. It's still very murky as to where valuations should be and how much more room there is on the downside.
Peter Coolidge
You really have a two-tier market with tech stocks going down and everything else going up. Part of this is because valuations in technology stocks got overdone this year and, at the same time, the Dow hadn't performed and now they look cheap.
Alfred Kugel
Mergers and acquisitions will continue to be a major driver for the next 12 months. There is a lot of cash on corporate balance sheets and very attractive valuations.
Giles Keating
We had a buy on Toshiba in the last quarter of last year, on the basis we thought it was going to make more money out of its flash memory business. And indeed it did. But again, that stock did well and now valuations do not look attractive any more.
Matt Harris
Interest rates will be the prevailing factor over the next couple of months. A rate hike has already been figured into valuations, but if we get an indication from the Fed that a few more rate hikes could be down the road, this rally could be very short lived.
Mark Cavallone
It's going to have to reach a point sometime in the future when the earnings aren't going to justify the valuations of stocks.
Michael Driscoll
We're not overly concerned about the U.S.-related shares. There's enough earnings growth and valuations are low enough to still be confident.
Brian Ingham
The valuations on tech stocks are so high that they've been an issue for a long time. These stocks have an ownership base that is prone to panic.
Pierre Ellis
We see this as a key opportunity over the next two years as we work with our clients to enhance their risk management capabilities by providing them with an accurate, independent valuations service.
Tim Barker
Valuations on mining stocks look very rich. Any pause in the spot price is leading to sharp price corrections and sentiment can reverse quite quickly.
Chris Tinker
In order for the small caps to really come back into favor, I think some of the valuations of these drug stocks will have to either remain where they are or come down a bit.
Sharon Doering
This dark cloud of high expectations has weighed on the stocks and valuations reflect high expectations.
Alex Vallecillo
The valuations of property has been so far out of whack for so long that this (an increase) had to happen sometime. The problem is that taxes are such an emotionally charged issue and no one likes to pay them, but the goal is to make sure that everyone is paying their fair share, and no one is getting a better deal than anyone else.
Ivan Canevello
The fall in freight rates is dragging down their bottom lines. Nonetheless, their stocks' low valuations will somehow attract investors.
Hajime Yagi
People are just looking at the valuations relative to other industrials and other large conglomerates and they still feel the stock is still kind of expensive.
Tom Leritz
The new bid competitively pushes into the range (of independent valuations) without breaking the back of the entity post acquisition.
George Clapham
I can't see any particular catalyst for the market going lower because there is the prospect of economic recovery, and improving expectations for economic growth in due course should feed through to improving expectations for earnings and should stop undermining apparently bad valuations.
Robert Kerr
Valuations are getting near the high end of the range, but I think there's a fair amount of upside surprises possible throughout this year.
Dennis Forst
This rally could easily be a strong rally in a bear market. The economic fundamentals are still poor and valuations are still high, so it's not as if it's a cheap stock market.
Jim Melcher
The same considerations apply to homeowners. All else being equal, interest rates are higher now than they would be were real estate valuations less lofty, and if real estate prices begin to erode, homeowners should not expect to see all the gains of recent years preserved by monetary policy actions.
Donald Kohn
The other thing is the redemption going on mutual and hedge funds due to declining stock valuations. We've seen a good level of liquidation recently where some of these funds that have been holding gold stocks are selling them to lock in profits. This kind of activity is still going to take a couple of days to unravel.
Amaury De Barros Conti
Many people will also want to commission their own valuations or surveys before proceeding - which will make the packs partly redundant.
Nick Gardner
M&A in the UK is not just focussed on a couple of sectors, it is across the board -- that tells you valuations are on the low side.
Robert Parkes
It's a positive environment for Canadian stocks right now. We seem to be going into an extended cycle of rising commodity prices. Takeovers are creating a lot of action, supporting valuations.
Greg Eckel
Who knows when and exactly what the catalyst is going to be. End demand is not as strong as what some of the components of the technology stock market would suggest. With valuations where they are right now, there is some near downside risk. But unlike where we were last year where we fell off a cliff, we might fall off a curve.
Andrew Galligan
The problem is that the stocks have run so much this year that valuations are stretched. To sustain these valuations, we need a strong first half of 2004, and that's an open question.
John Rutledge
While we haven't seen valuations drop to levels to justify a 'valuation call,' our comprehensive modeling of industry dynamics leads us to conclude that the time is now for a 'fundamental call' on the order bottom.
Byron Walker
We have been reasonably sanguine about the markets because valuations don't look overly expensive. In Europe, earnings have clearly had the global recovery element to them.
Stephanie Gerrard
Results could reflect some seasonal strength and increased valuations, as well as stable and recurring brokerage fees (as they are not typically based on online day trade volumes, but rather based on values).
Piper Jaffray
Investors are buying on expectations that earnings growth is going to be strong. Valuations are still reasonable.
Teo Chon Kiat
This is an ideal time to float shares and take advantage of stratospheric valuations in Saudi Arabia.
Joe Kawkabani
Looking back, there was a huge bubble. We don't have anything like those extreme valuations now.
Geoff Lewis
You've already seen what the market is betting on. Clearly the market believes a Bush win would be good for the market, but it's much more important to focus on valuations and quality companies.
Gregg Hymowitz
Cyclical sectors are at high valuations, justifying a more defensive stance.
Alexander Young
Large pharmaceutical companies have grossly bid up valuations.
Jon Fisher
Of course I'm worried about oil prices. But sustainability is what investors are looking for. If oil were to stabilize in the low $40s and stay there, valuations could move up.
Ted Parrish
In a market like this, with the current valuations ... any kind of hint of poor news is going to send the stock tumbling.
John Bartlett
With earnings growth likely to slow and stock valuations close to historic highs, investors should pick companies which can benefit from good domestic demand, and which have strong balance sheets.
Nicholas Yeo
The market now tends to be (thinking): With interest rate rises being behind us, if we've orchestrated a slowdown in the economy, how much of an impact will that slowdown have on corporate profits? Might corporate valuations be at the higher end of expectations? And so we're seeing some selling and softness, in the technology sector in particular, as a result of that.
Peter Chandler
As investors react to concerns regarding cell phone production, the shares of the passive component makers we follow have been plummeting despite further momentum in the business, higher earnings expectations and record low valuations.
Jerry Labowitz
The economy is growing, albeit tepidly, and we've had a major correction in the stock market, ... So valuations have come down dramatically and that's a positive. I also don't expect the interest rate cut from last week to have a major impact. What we really need to see is traction on the capital expenditure front.
Robert Hoehn
We are seeing a lot of valuations in the B and C rounds that are out of whack for what the reality of the company is. And in some places it is going to fall out. I hope it doesn't fall out for any of us.
Bill Mcaleer
H-shares with high valuations saw profit taking today.
Antony Mak
When you look at valuations, when ( AOL ) was trading below $30 [per share], it was below its growth rate. Even for a normal company, this is an aberration and an established, bigger company should trade at a premium.
Youssef Squali
I think it's bargain hunters looking at valuations and trying to sift through the rubble to pick up some values.
Mark Donahoe
(There) still might be a deal out there, but at current valuations, we see little room for upside.
Bryan Keane
Warren is obviously a very long-term thinker. The economy recovery, whether it's first-quarter, second-quarter, or second half of the year, doesn't influence his thoughts on valuations.
Bill Nygren
The majority of today's pure-play Internet companies will never make money and will not exist in three-to-five years. There will be a lot of consolidation and a lot of failure, and ultimately valuations will fall more in line with historical norms.
Henry Blodget
Sentiment is good in the UK at the moment, if you look across valuations they're not excessive. It's currently just being led up by miners, there's got to be a bubble at some point but if you take a very long term view, commodity prices have probably got further to go.
Jeremy Le Sueur
Valuations are a little high and the stocks are a little ahead of themselves.
Michael Fowler
I don't plan on making money in tech through M&A. Investors should look for tech stocks with good valuations and good organic growth.
Sunil Reddy
We think the valuations still can not be justified.
Peter Doyle
Valuations are still very attractive and we believe there are a lot M&A transactions to be fulfilled that are setting new sector benchmark prices.
Neil Dwane
In some cases, private valuations have surpassed public valuations in the hotel business. I'm surprised this didn't happen sooner.
Smedes Rose
We know it's easy to get swept away in a growth market, ... But I've been in this business more than 25 years and I've watched investors figure out a way to justify incredible multiples, only to see valuations collapse back to the underlying worth of the company. We are value investors, and at these prices, we aren't going to buy names like Microsoft.
Michael Price
A lot of these companies are rushing back to the Internet. We're certainly not seeing anything like the valuations during the dot-com boom. They're not outrageous, but they tend to be at the high end and could not easily be justified on a stand-alone basis.
Safa Rashtchy
Attractive valuations and convergence with the United States should continue to attract money flows and fund managers' interest to Mexico.
Carlos Peyrelongue
We are quite positive on the Singapore market given that economic growth has been coming in above market expectations. Valuations are reasonable and earnings are continuing to come in.
Teo Chon Kiat
Valuations are very high for the current economic climate or indeed even a prosperous climate. So it looks like what we are dealing with here is a bear market rally.
Tom Hougaard
We're going to see more software acquisitions at higher valuations. Stocks naturally will trade higher when you raise the bar.
Patrick Mason
Small-cap stocks have continued to do well relative to large caps and higher valuations result in fewer compelling investment opportunities. Although the first increase did slow cash flows, we believe that further inflow reductions are appropriate. We may need to reinvest dollars from some winners into stocks we think are more attractive. Reduced inflows will create more flexibility to do that.
Chuck Mcquaid
Stocks now become more attractive than bonds and companies will have easier and cheaper access to funds. Corporate valuations also become more attractive with the use of lower discount rates.
Yarek Aranowicz
We're at a funny point in the cycle. The companies have reported that they're seeing some growth for the next quarter, but it's not robust growth, and the valuations on a historic basis are still pretty full. What's driving these stocks is sentiment -- people are afraid that if they miss them now they'll miss a big run-up.
Ray Rund
If our outlook is correct, very rich valuations for the best tech stocks will persist, ... Maybe for years.
Jeffrey Applegate
In China, we stress a portfolio focused on domestic stocks and certain market leading consumer stocks in industries where there has been consolidation. Banks are also interesting, with good credit growth, the probability for increased fee income and implementations of cost cutting measures. Valuations may not be cheap but still appear attractive.
Malcolm Wood
Though many foreign investors are buying up blue chips on cheaper valuations, domestic players prefer to hold off ahead of the rally and the three-day weekend.
Sukhbir Khanijoh
The stock collapsed back down to 6 in two months because (the company's) growth rate was 650 percent in 1995 and it slowed to 87 percent in 1996. Eighty-seven percent is fast growth -- but it's at nosebleed valuations.
Liam Dalton
Oracle had gotten to valuations that it probably didn't deserve yet and the sell-off is a reflection of concerns over valuations. It's still a very good software company. We expect a little slower revenue growth but overall, they are an impressive company.
Kevin Caron
The tech sector is where the money seems to want to flow. You can just look at last week's action, when all the averages were up, the money flows into technology, primarily in telecommunications. And even though the valuations have been high all of these quarters and still are, I guess if you want to do well in the market you've got to have some of your assets in technology, definitely.
Robert Stovall
We should point out that significant legal hurdles face the plaintiffs before they could prevail in these cases. Many of the agreements between the managed care companies and the physicians require arbitration and this could defuse the class actions ... However, we believe current HMO valuations assume these lawsuits will be dismissed out of hand. This is unlikely.
David Shove
I think what you want to do is also focus on companies that are making the transition from old economy to new economy because they have 'old-economy' valuations, but are really joining the new economy and should have 'new economy' valuations.
Courtney Smith
Smaller tech stocks would concern me. Their valuations are almost back to 1999 and 2000 levels.
Stephen Mergler
It is not entirely a surprise that the deal fell apart. Valuations in the sector have fallen dramatically since the initial offer was made.
Craig Moffett
I think that the fluctuations are going to be very hard for the individual investor to keep up with. But our feeling is that Microsoft is a compelling software story at these valuations, and we have an 'outperform' on the stock. Buy-and-hold is a good strategy here.
Charles Di Bona
This should preclude valuations from retesting previous troughs of this year, making the stocks very attractive following the pullback of the past week.
Brett Hodess
The whole networking equipment area was the last bastion of high P/Es, ... A lot of these stocks were still at nosebleed valuations.
John Forelli
Merrill, relative to its historical valuations at this stage of the cycle, is quite cheap. And (the company) will of course enjoy some recovery probably over the next few weeks as it has in the last week, as worries about the interest rate environment subside.
Guy Moszkowski
It's the only place where the valuations are still at risk, where there's still room for selling. If the economy is softer than we think, if the war doesn't go well, if business investment doesn't show signs of picking up in the second or third quarter, then those are the stocks at most risk of going down.
Robert Walberg
The tech market was a speculators' market back then. It was a difficult environment to invest in. Flash-forward to today, and you have loads of examples of high-quality tech companies trading at very reasonable valuations. ... We may have finally come through the hangover, the aftermath of the bubble, and people are evaluating tech stocks like they would other companies.
James Morrow
Their growth rate internationally is still above 50 percent. If [eBay is] at 37 times forward earnings and maintaining 30 percent margins, that's a good investment at current valuations.
Scott Devitt
The last thing the market needs, ... is another 250 public Internet companies. I think this is the biggest threat to Internet valuations.
Andrea Williams
The market has gone berserk. Forget about rational valuations, price-earning ratios and growth fundamentals, we have turned into a frenzied mob in front of a roulette wheel.
Bassim Arida
The cheerleaders talk about the economy growing, but the economy grew at 7 percent from 1966 to 1982, while stocks went nowhere because valuations were too optimistic. And they're optimistic now, by historic measurements.
Jeffrey Saut
There is certainly not a lot of inducement to buy (stocks) right now. It does look a little bit tired and the valuations, in my mind, are not anything to get excited about.
Julie Brough
These findings suggest that in addition to the valuation premium from cross-listing and bonding to U.S. capital markets, cross-listed companies that take steps to increase their DR liquidity through improved investor relations and strong corporate governance can achieve even higher valuations.
Nancy Lissemore
If you've given away non-cash items, whether it's clothing or furniture, and you have valuations of between $500 and $5,000, then there's a form 82-83 that should be completed.
Jay Safier
Valuations are not cheap, that's what worries me. But it probably will get more expensive before it gets cheaper.
Rajat Jain
This market is not moving on fundamentals. There's an incessant flow of money, and you have a lot of stocks at excessive valuations. Once the flow of money subsides, you can look for a severe correction.
Derrick Berry
The earnings have been mixed. Given the valuations in the technology sector, I think it is causing portfolio managers to get a little nervous and take some profits.
John Bartlett
Some competitive keyword ad buys currently being made will be eliminated because the competitors (or search engines) decide those purchases are too risky. Stock valuations of relevant industry players should adjust downward accordingly.
Eric Goldman
We continue to be fully invested. Valuations remain reasonable. The number of bids shows investors that everybody has cash, everybody is rich.
Emmanuel Soupre
We are due a period of slight relief. (But) we always have to come back to the question of valuations and, relative to gilts, equities are still incredibly cheap.
Edward Menashy
What has happened over the past several months is valuations have come down a lot to where we think stocks are pretty reasonably valued here.
Edward Keon
Copyright © 2024 Electric Goat Media. All Rights Reserved.