Valuentum Exclusive Analysis for the Discerning Investor

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Oct 11, 2011

Alcoa's Results Disappoint; We'd Remain on the Sidelines
Alcoa kicked off third-quarter earnings season with a wimper. The aluminum giant missed earnings expectations by a large margin, but indicated that China and aerospace continue to be bright spots. We'd avoid jumping into Alcoa's shares.

Sep 19, 2011

United Tech's Potential Bid For Goodrich To Start Wave Of Aerospace Acquisitions
Conglomerate United Technologies is reported to be looking to acquire Goodrich, an aerospace component maker. We think such a deal makes sense and further suports our overweight position in aerospace in our Best Ideas Newsletter. Plus, we think this potential deal will start a wave of aerospace acquisitions, as participants look to capitalize on growing commercial aircraft demand in coming years.

Aug 9, 2011

A Shopping List of 15 Solid Companies Amid This Market Turmoil
We highlight 15 companies that have reported solid second-quarter earnings and have faced pressure from the market's recent selloff. These names have been added to our watch list, a component of our Best Ideas Newsletter.

Jul 28, 2011

Precision Castparts Posts Strong Fiscal First Quarter Results
Best idea Precision Castparts posted strong fiscal first-quarter results, and we believe the stock has further upside during the coming boom in commercial aircraft deliveries over the next few years.

Jun 23, 2011

Our Case for Precision Castparts -- Upside to $200 Per Share
We outline our thesis on Precision Castparts and why we think the firm is best positioned for the coming upswing in commercial airplane deliveries.

Jun 6, 2011

Sorting Through the Aerospace Supply Chain
We take a look at opportunities within the aerospace sector.

Jun 1, 2011

How to Play the Coming Upswing in Commercial Aerospace
We walk through two aerospace ETFs and highlight our top aerospace pick.

Jan 5, 2025

Keeping the Horse Before the Cart: Valuentum’s Economic Castle™ Rating
Image shown: An examination of the problem that might arise by focusing exclusively on companies that have economic moats, or sustainable and durable competitive advantages.Without an economic castle, an economic moat doesn’t matter. Let's examine Valuentum's Economic Castle™ rating.

Jan 1, 2025

The Price-to-Earnings Ratio Demystified
Let's examine the price-to-earnings (P/E) ratio. The key takeaways are: 1) without using a discounted cash-flow model, the P/E ratio that should be applied to a company's future expected earnings stream can never be appropriately calculated, and by extension, 2) when investors assign an arbitrary price-to-earnings multiple to a company’s earnings (based on historical trends or industry peers or the market multiple), they are essentially making estimates for all of the drivers behind a discounted cash-flow model in one fell swoop (and sometimes hastily). As earnings for next year are often within sight and can be estimated with some confidence (though this certainly varies among firms), calculating the price-to-earnings ratio via a discounted cash-flow process, in our opinion, is of far greater importance than worrying about whether a firm will beat or miss earnings in its next fiscal year. Because the P/E ratio is a discounted cash-flow model that considers the long-term qualitative dynamics of a particular entity, cash-flow analysis remains the first and most important pillar of our Valuentum Buying Index. And finally, investors cannot ignore valuation analysis or the future. Valuation is an important driver behind stock prices, and it is based on future expectations that can only be estimated. This is just a fact of the markets.

Jul 7, 2024

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