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Given publishing timetables, whether Robert Shiller and Andrew Smithers/Stephen Wright were brilliant or just lucky in bringing out their books on excessive valuations around the market peak in 2000 is hard to tell.But it is intriguing, and frustrating, to see the old arguments being trotted out again.
All that leaves American shares looking off-puttingly expensive, with valuations around 40-50% above the long-term average (see article).As yet, however, the excesses are not on the scale of the last two bull markets; indeed, the American public is only just regaining its appetite for equity mutual funds.
Small caps never took off; instead, when the gap finally closed, the "Nifty Fifty" fizzled out, sinking to valuations around 14 times earnings.
But the bulk of the league's owners bought in much more recently than that, too late to capture the surge in valuations around the NBA over the last two decades or so.
In both studies, there was a clustering of valuations around whole numbers of years.
Similar(54)
"Close to this valuation (around £2 billion) there are very few individuals in the world that could genuinely afford it from a cash perspective.
Thomas Martin at Collins Stewart said: We estimate the deal valuation at around $17 a barrel after adjusting for cash and tax shields and view this as a full valuation for undeveloped North Sea reserves.
It gives a valuation of around 16 times earnings before interest, taxes, depreciation and amortization.
The company had a market valuation of around $120 billion, $10 billion more than Apple.
Even a reduced valuation of around 140 times earnings implies a future of rapid growth and high profit margins.
Applying a PE of 16 times to our 2017 estimated earnings per share would drive a valuation of around 700p.
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