Quotes About Valuation

we say that to have a true investment there must be present a true margin of safety. And a true margin of safety is one that can be demonstrated by figures, by persuasive reasoning, and by reference to a body of actual experience.

A great company is not a great investment if you pay too much for the stock.

Our study of the various methods has led us to suggest a foreshortened and quite simple formula for the valuation of growth stocks, which is intended to produce figures fairly close to those resulting from the more refined mathematical calculations. Our formula is: Value = Current (Normal) Earnings × (8.5 plus twice the expected annual growth rate) The growth figure should be that expected over the next seven to ten years.

The investor should impose some limit on the price he will pay for an issue in relation to its average earnings over, say, the past seven years. We suggest that this limit be set at 25 times such average earnings, and not more than 20 times those of the last twelve-month period.

At some point in its life, almost every stock is a bargain; at another time, it will be expensive. Although there are good and bad companies, there is no such thing as a good stock; there are only good stock prices, which come and go.

A company can be a giant, or it can deserve a giant P/E ratio, but both together are incompossible.

Robert Shiller, a finance professor at Yale University, says Graham inspired his valuation approach: Shiller compares the current price of the Standard & Poor's 500-stock index against average corporate profits over the past 10 years (after inflation). By scanning the historical record, Shiller has shown that when his ratio goes well above 20, the market usually delivers poor returns afterward; when it drops well below 10, stocks typically produce handsome gains down the road.

El mercado es un péndulo que oscila constantemente entre un optimismo insostenible (que hace que las acciones sean demasiado caras) y un pesimismo injustificado (que hace que sean demasiado baratas). El inversor inteligente es un realista que vende a optimistas y compra a pesimistas. E

I charge more for prophecy," Offa said, "on the grounds that what is worthless must be made expensive.

Many significant stock-price inefficiencies can occur when a company is spun off.

In the spring of 2011, Amazon was valued at $80 billion. Buoyed by the rise of his stock holdings, the forty-seven-year-old Bezos was the thirtieth richest person in the world, with an $18.1 billion net worth.

In market valuation, Yahoo is worth about as much Walt Disney and the News Corporation combined.

There's a certain degree of speculation that goes into valuations. In so far as the market supports a valuation, everyone who gets a great one deserves it, but they should also be cautious because that speculation is temporary. I saw Yahoo go from $100 billion to $10 billion. It's not a long-term measure.

I don't think objectively we are in a tech bubble when tech stocks are at a 30 year low.

Have transfer prices in England surprised me? No. Are the prices over-inflated? Yes. But there is no surprise now.

Healtheon was worth whatever investors felt like paying for it, and that depended largely on public opinion. Healtheon was running for president. The IPO was election day.

If you want to know what these Wall Street firms are really worth, take a cold, hard look at these crappy assets they're holding with borrowed money, and imagine what they'd fetch in a fire sale.

This is a bit like big-game hunting. You look for companies of a certain size that deserve to be public.

As the economist Herman Daly once put it: "The current national accounting system treats the earth as a business in liquidation.

The key thing when you short is to make sure you're not wrong on the fundamental intrinsic value.

If you're investing in a company in the Bitcoin economy, you have to compare the valuation of the company to the valuation of the entire economy.

Valuation depends on several factors. From an investor angle, they look at leadership position, management, and what the company's offerings are. I think these three things got 5/5 for a company like Flipkart, and that is what is driving valuations and growth.

For example, to value a ten-year bond with a 6 percent coupon, simply calculate what each of the interest payments and the principal repayment are worth today, in terms of present value. The sum of these individual values is the bond's total value.

Having one's image, and effectively, life, democratized, dehumanizes and sometimes objectifies it into an entertainment product. What sort of valuation of the ego would one have once you've let it been preyed upon by the public for years and years? Perhaps, it becomes truly just skin and bones.