"Dominion is a bigger growth story than most of its peers, but shares will remain on Hold for as long as we consider its valuation too rich. (as of 9/25/15)" What is meant by "its valuation is too rich" and what #s am I looking for to determine for myself that a valuation is too rich?dale
well,, that's not a really definitive statement so there's not just one thing that you are looking for/at.If the author of that statement has put forth a valuation methodology, his methods produce valuation metrics he/she considers too steep for comparison to the overall market. example: a P/E of 45 for a company that is not growing faster than inflation or industry growth in its industry.Does that mean the author is right? no. he/she may be using the incorrect methodology for valuing that company, or at least a different method than the rest of the market is using and finding the value to be "there".It's an opinion statement, pure and simple.
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