Have biotech valuations reached bubble territory?
It was hardly irrational that these strong fundamentals were translated into sharply rising stockmarkets.Eventually, however, equity valuations reached very high levels.
There was no mention in Chinese state media, of course, of the real story - that over the course of a year, China's authorities manufactured an extraordinary bull market that was bound to collapse because valuations reached absurd levels.
The methods used by the fund's advisers, led by Andrew Smithers, an economist and consultant whom Mr. Hearn calls his "investment guru," reflect their belief that after asset valuations reach extremes, they eventually revert to historical norms.
Everyone was enthusiastic about equities in the late 1990s, so valuations reached giddy heights; subsequent returns have been low.European shares are not at their cheapest ever, but they look relatively attractive.
"That dismal fact is testimony to the insanity of valuations reached during the great bubble.
VCs have liquidation preferences that insure they make their money back, the founding team is getting its payout, but should rank-and-file employees be worried as valuations reach new nosebleed levels?
We have a lower risk to see valuations reach "irrational exuberance" levels and that is good for everyone (entrepreneurs / investors / acquirers) because at one time or another reality reasserts itself – and that's painful for both investors and entrepreneurs.
Valuations such as price-to-earnings (P/E) or price-to-sales (P/S) ratios help measure how cheap or expensive stocks are, but these valuations reach different extremes from one cycle to the next.
As Autonomy's valuation reached eye-watering levels, some started to question the figures.
