Homepage / Investment / Goldman: By this one measure, stock market still looks cheap
Bonver Casino Cz Hrací Automaty S Bonusem Zdarm Magazyn Żużel Speedway W Polsce I Na Świeci Zakłady Sportowe Online Autógrafo Bukmacherska 1xbe “Pin-up O Melhor Cassino Do Brasil Web Site Oficial ᐈ Jogar Caça-níquei Zakłady Sportowe Online Obstawiaj U Bukmachera Gg Be What Industries Use Virtual Data Room? Advantages of a Data Room What Does a Board Room Provider Do? Data Room Analysis for Venture Capital Funding The Importance of Board Reporting Software Safe Uploading and Downloading Business Files How to Select the Best Board Management Software How to Organize the Work of a Company “gerçek Parayla En Iyi Slot Makineleri Ve Spor Bahisler Which is the Best Podcast For Stock Market Beginners? Virtual Data Room Facts How to Protect Confidential Documents for Boards Advantages of Online Meetings Business Issues to Consider When Choosing a Data Room Provider What Is a Data Room? Virtual Board Room Software Due Diligence Risk Factors How to Choose a Reliable Tool for Data Exchange test Users535352253 Board Software and VDR Programs Business Operations Management Software Keep Data Safe and Protect Your Business Data How to Conduct a Board Self-Assessment Uncomplicated Ways to Simplify Daily Business Transactions Due Diligence Blog Digital Data Rooms for the Netherlands The New Era of Business Software and Reporting What Types of Businesses Use VDR Software? Ma Analysis Mistakes The Corporate Governance Role Board Room Apps Secure Board Management With Secure Board Portals What Happens at Board of Directors Meetings? Board Room Software Review How to Prepare Board Rooms for Effective Board Meetings Board Room Software Boosts Performance and Communication Selecting a Secure Data Room Review Local Data Room Service Review How to Find the Best Virtual Data Room Review What to Look for in a Data Room uk Provider Document Storage and Distribution Software Everything About VDRs Corporate Software Advantages How to Choose a Virtual Data Room Provider The Most Secure Way to Transfer Files How to Manage Online Board Meetings Benefits Virtual Data Room Solutions – Must-Haves for M&A and Due Diligence Best Data Room Functions for the Different Types of Industries How to Choose a VDR Software Provider How to Choose an Online Board Portal The Benefits of a Boardroom Review Board Room Online Solutions – How to Get the Most Out of Your Board Meetings Why You Need a Board Room How a Board Room Blog Can Transform Your Business Choosing the Best Board Room Format How to Have Productive and Engaging Board Directors Meetings Choosing the Right Virtual Data Room How to Keep Safe Documents Storage Teaching Kids About Online Safety Avoid Costly Mistakes With Free Data Room Services Corporate Virtual Data Unlimited Data Room Software For Due Diligence Leading Business Software Features to Look For Secure Online Data Rooms Solutions How to Keep Share, Edit and Delete Your Data Safe Virtual Data Room Software Secrets for M&A Due Diligence What to Look For in Boardroom Providers Board of Directors Blog Posts How to Deliver Value at Your Board Meetings How to Have Effective Board Meetings Responsibilities of Board Members Deal Management – How to Effectively Manage a Complex Sales Pipeline Data Rooms For Mergers And Acquisitions How to Have a Successful Board Room Meeting Choosing a Board Room Service Provider What is a Board Room Service? Board Room Software Review – Choosing the Best Portal for Mother Board Meetings Why a Board Room Providers Review Is Important What Is a Board Room Review? Venture Software for VC Firms What Is an Assessment Report? The Importance of a Tech Audit Popular Business Applications What to Look For in a Data Room App What Are Business Applications? How to Choose a Virtual Data Room How to Plan a Data Room Review Coronavirus Guide What is a Virtual Data Room? What Is Data Science? What Is an Operating System? Turbotax Small Business Review How Online VDRs Are Used in M&A Deals Why Choose VDR Software?

Investment

Goldman: By this one measure, stock market still looks cheap

Thanks to a recent decline in companies’ capital investments, the record high stock market may still be one to buy, Goldman Sachs said.

The “S&P 500 is expensive according to most valuation metrics, but appears attractively valued on free cash flow yield due to reduced capex investment,” David Kostin, chief U.S. equity strategist at Goldman Sachs, said in a report with other analysts Wednesday.

The S&P 500 traded Thursday about half a percent below its all-time high set July 27. Its more than 10 percent gain this year into record territory has many analysts worried about whether the stock market is at an unsustainable level.

Indeed, Kostin pointed out the median S&P 500 stock and the index as a whole are near historically high extremes — the 85th to 100th historical percentile — when looking at many valuation measures such as the ratio of enterprise value to sales, forward price to earnings, and price to book.

Only free cash flow yield is in a far lower historical percentile – 52nd for the entire S&P 500 and 47th for the median stock in the index, the report said.

Free cash flow yield is a measure of financial performance based on a company’s cash flow from operations, minus capital expenditures, divided by the stock’s market capitalization. Generally, a higher free cash flow yield is more attractive.

S&P 500 highly valued on all metrics except free cash flow yield

Source: Goldman Sachs Global Investment Research

In another encouraging sign for the stock market, companies appear ready to spend on capital expenditures again. Many have criticized corporations for artificially boosting stock prices through massive share buyback programs.

After four years of decline, global capital expenditures are expected to grow 5.5 percent this year, S&P Global Ratings said Monday in its fifth annual global corporate capex survey.

In this environment, Kostin said investors can find investment opportunities by looking at an “adjusted free cash flow yield” that incorporates a company’s spending on research and development.

The strategy has performed well historically. Goldman said its basket of 50 stocks with the highest trailing 12-month total capex and research and development spending as a share of market cap has climbed 41 percent since the beginning of 2016, versus 25 percent for the S&P 500.

By combining a high adjusted free cash flow yield strategy with a high growth investment ratio strategy, Kostin recommends American Airlines, General Motors, Eli Lilly, NetApp, software design and consulting firm Synopsys and aerospace defense company Textron.

“These firms are among the cheapest in their sector on adjusted FCF yield (offering value) and have invested the most in growth capex and R&D over the previous three years (offering growth),” Kostin said.

Disclaimer

Source: Investment Cnbc
Goldman: By this one measure, stock market still looks cheap

Comments are closed.