Thursday, June 02, 2016

Mind The Price-To Sales Ratio,
Now The Highest Ever
Marketwatch highlights how price-to-earnings ratios indicate stocks are well beyond being merely fully priced, as the chart from Ned Davis Research shows .. "The median P/S at those levels suggest that, unlike the bubble of 2000, when tech stocks led the price appreciation, the vast majority of large-cap stocks are now too expensive. One of the reasons for a rise in the P/S ratios is declining revenue over the past three quarters as prices climbed to near record levels. On revenue basis, U.S. stocks are as expensive as they have ever been. But it’s not the only metric. They are expensive if you look at cyclically-adjusted or Shiller price-to-earnings ratios."
LINK HERE to the article

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