Benjamin Low’s Post

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/970g50ROzfM

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/G9Il50RIWk5

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/j47W50RKz46

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/kQhF50RNXPw

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/RqXV50RMYMm

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/Jf9J50RJ0Yp

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/4gMo50RN03g

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more of my company's latest piece here: https://ow.ly/c8lt50RShm5

Recent earnings for small-cap companies have disappointed, but we see this as more driven by sector and cyclical effects that should ease over the next 12 to 18 months. As earnings start to rebound, we expect the market to shift its focus back to the compelling valuation discount offered by US small caps, setting the stage for the next leg of their outperformance. Read more here: https://ow.ly/FVVS50RHB6q

We often encounter the challenge of assessing/estimating a company’s true earnings potential. We usually find it difficult to estimate the sustainable earnings of the company. How can it be done? This is where the term "normalized earnings" comes into play. What Are Normalized Earnings? Normalized earnings are expected earnings of the company after adjusting for one-time events, in other words, after adjusting for the impact of temporary effects of events or cyclicality like acquisitions, mergers, restructuring, unusual gains or losses, and non-recurring expenses. The goal is to present earnings that reflect the company's core operating financial performance under normal conditions. Determinants of Normalized Earnings: When calculating normalized earnings we should nullify the impact of: Non-recurring items: Eg. litigation settlements, restructuring expenses, etc. Seasonal / cyclicality fluctuations: Earnings should be smoothened to reflect the average performance. Economic Cycles: Macro conditions like Booms or recessions should be adjusted to reflect performance in average market conditions. Impact on Valuation: 1. Improves Comparability with peers: By adjusting, we can better compare and understand the performance of companies in terms of operations solely. 2. Enhances Predictive Accuracy: Provides a more reliable basis for forecasting future performance. But the forecast horizon must be kept in mind. 3. Investment Decisions: It helps investors to understand the sustainability of earnings better. Do you have any other ideas to share? Would love your engagement! Mentor- Parth Verma #finance #linkedin #valuation