Rich Valuation

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Dictionary Says

Definition of 'Rich Valuation'

An asset that is being valued by investors at a very substantial premium, either in terms of its earnings or cash flow, or in relation to its peers. A rich valuation on an asset may also be considered if it is trading at levels that are much higher than historical norms. The term is applicable to the valuation of any asset, but it is most commonly used with reference to stock valuations. An asset that is trading at a rich valuation may have a risk/reward payoff that is not particularly attractive to value investors.

Investopedia Says

Investopedia explains 'Rich Valuation'

Stocks that are trading at very high multiples in relation to their earnings or book value (price/earnings or price/book ratios), compared to their peers, are considered to be trading at rich valuations. Similarly, a real estate investment trust would be considered to be richly valued if it is trading at a high multiple of its funds from operations (price/FFO).

Search results for

'Rich Valuation'

  • Making The Case For Lululemon's Rich Valuation

    http://stocks.investopedia.com/stock-analysis/2010/Making-The-Case-For-Lululemons-Rich-Valuation-LULU-GYMB-JCG-COH1125.aspx
    ... Article; Comments (0). Making The Case For Lululemon's Rich Valuation.
    Posted: Nov 25, 2010 10:07 AM by Will Ashworth. ...

  • Salesforce.com And A Valuation In The Clouds

    http://stocks.investopedia.com/stock-analysis/2010/Salesforce.com-And-A-Valuation-In-The-Clouds-CRM-ORCL-MSFT-VMW-CTXS-TLEO1122.aspx
    ... NYSE:IBM) could only hope to get, Salesforce.com keeps the argument alive that it
    can grow into a dominant software player and grow into its rich valuation. ...

  • Spirit AeroSystems Transcends Tough Economy

    http://stocks.investopedia.com/stock-analysis/2010/Spirit-AeroSystems-Transcends-Tough-Economy-SPR-BA-GD-LMT0107.aspx
    ... the year. Shares currently trade for $21 - not a rich valuation if the earnings
    are looking to rebound from here. Compared to valuations ...

  • DCF Valuation: The Stock Market Sanity Check

    http://www.investopedia.com/articles/stocks/08/discounted-cash-flow-valuation.asp
    ... In Summary DCF valuation isn't just financial rocket science. ... Rich White. Rich White.
    Rich White has been a freelance financial writer since 1981. ...

  • Downside Risk At Mead Johnson

    http://stocks.investopedia.com/stock-analysis/2010/Downside-Risk-At-Mead-Johnson-MJN-BMY-NSRGY-DANOY0202.aspx
    ... Based off forward guidance, shares of Mead Johnson are currently trading at a forward
    P/E of approximately 16.75 times, which is a rich valuation given there ...

  • Should Investors Pay Any Price For VeriFone?

    http://stocks.investopedia.com/stock-analysis/2010/Should-Investors-Pay-Any-Price-For-VeriFone-PAY-HYC-EBAY-KKR1205.aspx
    ... That makes the rich valuation on these shares somewhat puzzling - investors are
    seemingly racing each other to pay up for a company that does not seem to merit ...

  • Projected Returns: Honing The Craft

    http://www.investopedia.com/articles/05/020805.asp
    ... Therefore, rich valuation levels could be justified even further if operating earnings
    are used instead of reported earnings, which exclude both discontinued ...

  • Will Social Gaming Keep Electronic Arts Relevant?

    http://stocks.investopedia.com/stock-analysis/2011/Will-Social-Gaming-Keep-Electronic-Arts-Relevant-ERTS-ATVI-DIS-RENN-AAPL-GOOG-NTES-SNDA-NCTY-TCEHY-TTWO0713.aspx
    ... Any way you slice it, this is a rich valuation on the fundamentals. PopCap
    does boast over 150 million installed games, but it produced ...

  • Should Investors Worry If Gen-Probe Doesn't Sell Out?

    http://stocks.investopedia.com/stock-analysis/2011/Should-Investors-Worry-If-Gen-Probe-Doesnt-Sell-Out-GPRO-NVS-ABT-GE-LIFE-TMO-DHR0610.aspx
    ... Novartis would have to pay a pretty rich valuation for Gen-Probe and that may test
    the patience of shareholders a bit too far, as Novartis arguably still needs ...

  • Atmel Lives Up To Expectations, And Then Some

    http://stocks.investopedia.com/stock-analysis/2010/Atmel-Lives-Up-To-Expectations-And-Then-Some-ATML-LLTC-TXN-CY-SYNA-AAPL-MOT1108.aspx
    Atmel is matching a rich valuation with a strong performance. Find out if future
    product launches will catapult ATML to higher profits. ...

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