The median P/S of companies within FactSet’s Internet Software/Services sector that have revenues over $500m (which includes companies like Google, Facebook, Baidu, Tencent, and Yahoo), is 2.4x. The standard deviation of P/S ratios across this same sample (58 companies) is 5.1. Compare this figure to the standard deviation of P/S ratios in other sectors such as Consumer Services (1.5), Transportation (1.4), and Communications (1.5), and you start to see the difficulty in accurately valuing these businesses.
Are we headed for a tech bubble?
By Mark Berry, United Kingdom Global Banking & Brokerage Consulting Manager
Posted in FACT OR FICTION, In My Opinion..., Interesting Facts
Tagged apple, bubble, factset, ipo, IPOs, Linkedin, nasdaq, S&P 500, Stocks, tech bubble, Twitter, valuation, whatsapp, zynga
In our current bull market, companies are beginning to come to terms with the fact that their actual businesses are not growing nearly as fast as their stock prices. Before too long, investors are going to ask for companies to show up with businesses that justify their stock market valuations. Just like some companies—such as Microsoft (MSFT), Intel (INTC) and others—are taking advantage of the artificially low interest rates available [in the debt market] before they’re gone, some management teams are beginning to realize that..
Posted in In My Opinion...
Tagged armh, Bitcoin, bnny, CRM, HAIN, Hain Celestial, hedge fund long play, meli, oat fiber, organic corn meal, Organic Food, organic soybean, PCLN, ron reuven, soybean, soymilk, steve bromley, STKL, SunOpta, SYY, WFM, white wave, whitewave, whole foods, wwav, yaron reuven
Source FactSet Nov 22, 2013
Over the past week, the DJIA closed at a record high value (16009.99), and the final DJIA component (Home Depot) reported earnings for the third quarter. During the third quarter earnings season, some companies in the DJIA specifically commented on the difficult conditions they faced in Europe during the quarter. Other companies, however, stated that conditions had improved in Europe relative to recent quarters. In terms of revenue growth from Europe, what did companies in the DJIA report for numbers for the third quarter?
Posted in Interesting Facts
Tagged blended earnings growth rate, blended revenue growth rate, Campbell soup, Consumer Discretionary, DJIA, earnings, factset, HomeDepot HD, INDEX, jc penny, JCP, Q3 2013, Q3 2014, ron reuven, S&P, target
A tale of two Europes: The UK economy surges ahead while the rest of Europe falls behind. By Sara Potter, VP, Markets Analysis – Nov 20, 2013 – FACTSET
Many global market players were caught off guard earlier this month when the European Central Bank (ECB) cut its main policy interest rate to 0.25% from 0.50%. The move came on the heels of the release of the region’s lowest monthly inflation figures since 2009; in October, prices rose by just 0.7%, well below the ECBs target inflation rate of 2.0% and raising the specter of deflation.
The rate cut had been anticipated by many observers; however, it was the swiftness of the action that caught so many off guard. The quick move appeared to be justified a few days later when the Eurozone third quarter GDP numbers were released: Eurozone GDP grew by just
Posted in In My Opinion...
Tagged bank of england, central bank, ecb, europe, european central bank, eurozone, french economy, GDP, germany, global market, misery index, policy rates, s&p downgraded france, target inflation rates, uk, uk consumers