Valuation

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Could 2017 Mark the Return of the Tech IPO?

By Trevor M. Williams | February 9, 2017

2016 marked the slowest year for global technology initial public offerings (IPOs) as measured by both number and value in at least the last five years. The combination of uncertain market conditions, high private valuations and ample cash hordes allowed many companies to wait until public markets offered a more favorable environment. After a slow start, global technology IPOs recovered slightly in the second half of the year. We’re now entering into an environment that looks to be highly favorable for companies seeking to go public.

Looking for Value in Add-Ons

By Justin Kaplan | November 3, 2016

In previous posts, I have discussed the rising valuations and increased use of equity to finance deals in the U.S. private equity markets. This week’s chart shows yet another trend that has emerged as valuations continue to rise. Add-on acquisitions have been on an upward trajectory since approximately 2006 and have reached a decade high as a percent of buyout transactions, reaching 64% in 2016.

Stay Defensive on Asset Valuations Due to Uncertainty

By David O'Malley | October 17, 2016

Both stocks and bonds lost ground last week as significant uncertainty remains ever present in market dialog. The week ahead holds more potentially negative headlines for asset prices.

Complacency Broken

By David O'Malley | September 12, 2016

I am writing this week’s blog post from the PartnersFinancial Fall meeting in Chicago. For a few weeks now, I have been writing about the complacency in markets surrounding global… Read More

Could the M&A Cycle Be Entering Extra Innings?

By Justin Kaplan | August 4, 2016

Midway through 2016, deal multiples in private equity and merger and acquisition (M&A) transactions in the U.S. have climbed almost a full turn higher than the levels seen in 2015, sitting at 11.3x (EV/EBITDA*).

Insurance Technology Investing Heating Up

By Trevor M. Williams | May 5, 2016

As is the case in many other industries, technology is changing the way insurance-related business is done across the product spectrum – medical, property/casualty and life. Continued advances in software and… Read More

Stock Valuations and the Fed

By David O'Malley | January 18, 2016

Last week, I was asked to comment on an article in the Wall Street Journal that suggested investors have been accepting higher levels of risk in their investments in a quest for higher returns. The article held that this means many assets are overpriced, and the Fed’s actions in raising interest rates will cause those prices to fall.

Finding Value in the Private Equity Middle Market

By Justin Kaplan | September 17, 2015

This week’s chart focuses on finding value in the private equity middle market by looking at the purchase price multiples of companies whose enterprise values are between $100-$500 million (Middle Market) versus those valued at less than $100 million (Lower Middle Market).

The “Mutualization” of Late-Stage Venture Capital Valuations

By Trevor M. Williams | June 25, 2015

Mutual funds are increasingly competing with, and in many cases pushing out, venture capital (VC) firms from later-stage financing rounds of private tech companies.

Will Volatility Increase This Week?

By David O'Malley | June 15, 2015

Last week was relatively slow, from a market perspective, until later in the week. Volatility pickled up on Thursday and Friday, but the overall stock and bond markets experienced little overall change during the week.



Disclosure Statement

This blog post is for informational use only. The views expressed are those of the author, Dave O’Malley, and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

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Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

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