Valuation

Our take on the investing, financial, & economic themes of the day

Shopping from the Stock Market’s Clearance Rack

24 February, 2016 by Ben O'Brien in Commentary
Last weekend I was at a department store with my wife. While I was waiting for her to pick up some towels from our wedding registery, I wandered over to the men’s section. I wasn’t looking for anything in particular, but, always a thrifty sort, I found myself drawn to the clearance ... read more...

Using Free Cash Flow Yield to Evaluate Stocks

21 December, 2015 by Ben O'Brien in Commentary
I wrote recently about the problems of relying too much on the P/E ratio for investment decisions. So what should you look to instead? There are lots of important fundamental factors to consider, but one particularly useful measure is the Free Cash Flow Yield. It is a measure of how much extra ... read more...

The Problem with PE Ratios

3 December, 2015 by Ben O'Brien in Commentary
One of the first things new investors tend to learn is the PE ratio. It is a very quick measure of a company’s relative valuation. To get the PE ratio you simply divide the current share price by one year’s earnings per share. The ratio tells you how much you will pay for each ... read more...

Bubbles and Dead Unicorns: A Technology Investing Update

20 March, 2015 by Ben O'Brien in Commentary
Last summer I wrote a series of posts on the debate about whether or not there is a bubble in technology stocks and start ups. Less than a year later the situation has escalated substantially, and one of the most vocal defenders of tech stocks from last year is now urging caution. My comments ... read more...

Over the last 5 years, Under Armour is up Nearly 1000%. Is it finally time to sell?

11 July, 2014 by Ben O'Brien in Commentary
Under Armour (UA) has been one of the best performing stocks in our small cap fund in recent years. The stock rebounded strongly after a pullback earlier this year and is up 33% this year. Last year the stock was up 80%. The company has little debt and a solid balance sheet. It is still led by ... read more...