Exact(8)
But Premier Oil slipped 4.7p to 272.8p as Goldman Sachs moved from buy to neutral: While valuation remains relatively attractive, we forecast little medium-term growth and see better opportunities elsewhere in the sector.
And while valuation may largely be a game for pundits and journalists, it performs an important signaling function; increasing valuations indicate better prospects for a company, decreasing valuations the opposite.
But, while valuation is starting to look attractive, it is hard to see shares outperforming under market expectations for muted earnings growth, the overhang of the Labour Party's proposed price freeze, protracted regulatory uncertainty around the electricity distribution price review, and questions about investment opportunities post 2015.
"While valuation is still not cheap, the pullback makes the shares somewhat more attractive given the company's growth profile," the analyst wrote.
Management has the wherewithal to buy back 5% of its stock per annum while valuation is 12 times forward 12-month earning power.
With regard to fundamentals, Subramanian notes that recent operating metrics in terms of sales and earnings trends are good while valuation remains relatively compelling..
Similar(50)
Ten years ago, the dividend yield on the American market was low while valuations were high.
It has been widely noted that while valuations in the aggregate are high, big chunks of the stock market are cheap, and have been for some time.
While valuations in the United States might be on the "rich" side, they seemed favorable, he said, when taking earnings and the economy into account.
Some observers saw the deal-making as an encouraging sign that companies were still willing to make mergers and acquisitions happen, and that many might do so while valuations still looked cheap.
For instance, while valuations abroad remain generally attractive, the same cannot be said about the pricing of high-quality companies in both the developed and emerging-market worlds that fund managers most covet.
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