Skip to content

Earnings Yield

Nov 07 2013

Stock Values: Absolutely, Relatively

  • Nov 7, 2013

The severity of the market’s current overvaluation depends on one’s historical vantage point.

Mar 06 2013

Of Special Interest: Valuing The Stock Market - Do Interest Rates Matter?

  • Mar 6, 2013

Models based on so-called relative valuations have a poor track record in practice, having misled investors at several historic inflection points. Interest rates have virtually no impact on stock market valuations, but they may have transitory effects on stocks in the short term.

Mar 04 2009

Graham Model Revisited

  • Mar 4, 2009

Last month, using Ben Graham's model, we found the U.S. market to be undervalued for the first time in about 50 years. Unfortunately, the values have become even more compelling over  the past five weeks.

Jun 05 2007

Interest Rates And Stock Valuations: A Broken Linkage?

  • Jun 5, 2007

A look at the relationship between bond and stock yields as justification for today’s expectations of a continued bull market and for the current LBO craze. No evidence that Fed-type valuation models help forecast future market returns.

Aug 05 2006

High P/E Stocks: Becoming A Safe Place To Hide?

  • Aug 5, 2006

Value continues to have leadership position over Growth among Large Cap stocks. Mid Caps also shifting to favor Value, but Growth still leading in the Small Cap tier.

Sep 01 1988

The Historical Relationship of Earnings Yields to Bond Yields…. Another Installment

  • Sep 1, 1988

In the August issue, we examined the historical relationship of bond yields and common stock earnings yields, looking at it in terms of a ratio. In this issue, we make the same comparison in terms of a basis point differential.