The aim is to find large gaps between current prices and normalized long-term valuations.
This matrix can be applied to long-term valuations and numerical modelling of storm water treatment facilities.
Ironically, it would seem that miners feeling undervalued are going by short-term, not long-term, valuations.
In the near term, high volatility will be with us, and it will require a disciplined approach to long-term valuations to avoid being panicked out of good companies that are fundamentally cheap.
Meanwhile, equities look expensive by two of the best long-term valuation measures, which are calculated in quite different ways.
Its forecast about the Anglo-American housing market, based on long-term valuation measures, looks rather more soundly based.
For those who agree with your blogger that Wall Street is expensive on long-term valuation measures, this may not be much comfort.
But chart 3, from a website updating "Irrational Exuberance", a book by Robert Shiller of Yale University, shows the best long-term valuation measure, the cyclically adjusted price-earnings ratio.
Tepid trend growth and the absence of strong long-term valuation support suggest average equity returns are also likely to be more modest, on average, in the coming years than historic averages.
And that is going to be the key to Groupon's long-term valuation, whether or not it is creating repeat, loyal customers for merchants or just a stampede of deal-hungry coupon clippers.
In a recent post about Groupon's multi-billion dollar valuation and revenue estimates, colleague Erick Schonfeld talked about how creating repeat, loyal customers (and not just deal-happy coupon clippers) is essential to the daily deal site's long-term valuation — and success.
