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  • About
  • Knowledge Centre
    • Economic Growth and the Business Cycle
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Daily Archives: January 5, 2019

Equities: Useful and Not-So-Useful Valuation Metrics

Financial MarketsBy Stuart AllsoppJanuary 5, 2019Leave a comment

Intro: Valuation measures are only as useful as their ability to predict subsequent market returns. The valuations metrics that smooth out the short-term effects of the business cycle on profit margins tends to have the best track record of predicting future returns. For this reason, cyclically-adjusted measure, as well as the simple price-to-sales ratio, tend…

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