Does Quantitative Easing Affect Valuation?
Feb 19 2020

Does Quantitative Easing Affect Valuation?

Does Quantitative Easing Affect Valuation? More fundamentally, low interest rates, high margins, low taxes, buybacks & free cash flow drive stocks higher. Image: Fidelity Investments

S&P 500 Payout Ratio
Jul 31 2019

S&P 500 Payout Ratio

S&P 500 Payout Ratio Stock buybacks and dividends as a percentage of free cash flow are reaching dangerous levels. Image: MarketWatch

S&P 500 PE Ratio Versus U.S. 10-Year Yields
May 06 2019

Why Lower Bond Yields Influence the S&P 500?

Why Lower Bond Yields Influence the S&P 500? Because lower interest rates push stock market multiples higher.  If interest rates are lower, then the value of future cash flows increases, because future cash flows are discounted back at a lower interest rate. So, lower U.S. 10-year yields influence the stock market equity risk premium. On the other…

Aswath Damodaran – Laws of Valuation Revealing the Myths and Misconceptions
Nov 12 2018

Aswath Damodaran – Laws of Valuation: Revealing the Myths and Misconceptions

Aswath Damodaran – Laws of Valuation: Revealing the Myths and Misconceptions Aswath Damodaran is professor of corporate finance at the Stern School of Business at New York University, with his unique perspective about equity valuation. Here, he talks about the corporate life cycle, corporate finance, cash flow and the laws of valuation. https://www.youtube.com/watch?v=c20_S-QgvsA