Market Perspective Q4 2024 (8:23)

By: Dan Lysik, CFA

January 28, 2025

Daniel Lysik, CFA is a portfolio manager for Miller Value Partners.

Miller Value Partners, LLC (“MVP”) is a registered investment adviser. More information is available at https://adviserinfo.sec.gov/firm/summary/110632

Statements and opinions expressed in the above commentary are based upon information considered to be reasonably reliable but should not be relied upon without additional information that is particular to your objectives and suitability. Any statements or opinions are subject to change without notice. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of the individual speaking, may differ from the views or opinions expressed by other employees of MVP.

Information and opinions presented are market commentary for educational and informational purposes only intended for a broad audience. The information does not intend to make an offer or solicitation for the sale or purchase of any speciﬁc securities, investments, or investment strategies. Investments involve risk of loss and are not guaranteed. MVP has a reasonable belief that this commentary does not include any false or material misleading statements or omissions of facts. Any third-party information and hyperlinks used are deemed to be reasonably reliable.

Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for any individual. Readers are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation.

The views expressed are those of the portfolio managers as of the date indicated, are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. All data referenced are from sources deemed to be reliable but cannot be guaranteed. Discussions of individual securities are intended to inform shareholders as to the basis (in whole or in part) for previously made decisions by a portfolio manager to buy, sell or hold a security in a portfolio. References to specific securities are not intended and should not be relied upon as the basis for anyone to buy, sell or hold any security. Portfolio holdings and sector allocations may not be representative of the portfolio manager’s current or future investment and are subject to change at any time. Dividends are not guaranteed and a company’s future ability to pay dividends may be limited.

The Mag 7 or Magnificent 7 are a group of companies in the U.S. stock market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla. Forward Price-to-Earnings (P/E) divides the current share price of a company by its estimated future earnings per share. The S&P 500 Index is a market capitalization-weighted index of 500 widely held common stocks. Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges. Profit margin is the amount by which revenue from sales exceeds costs in a business. Forward Earnings Yield is the projected earnings yield for the current fiscal year. Valuation multiples are financial tools that compare a company’s value to a key financial metric and are used to evaluate companies to make them more comparable. The 10-year yield, also known as the 10-year Treasury bond rate, is the interest rate the U.S. government pays to borrow money for 10 years. Growth rate is the percentage change in a value over a period of time. Free cash flow is earnings before depreciation, amortization, and non-cash charges minus maintenance capital expenditures. Capital Expenditures (CAPEX) are payments made for goods or services that are recorded on a company’s balance sheet instead of expensed on the income statement. Long-duration equities are stocks that are expected to generate the majority of their cash flow in the future. They are often growth-oriented companies that are expanding their economic position. Price to sales ratio is a tool for calculating a stock’s valuation relative to other companies. It is calculated by dividing a stock’s current price by its revenue per share. The Russell 1000® Growth Index measures the performance of those Russell 1000 Index companies with higher price-to-book ratios and higher forecasted growth values. Compound Annual Growth Rate (CAGR) is the rate of return that would be required for an investment to grow from its beginning balance to its ending one. A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The Russell 2000® Index is a small-cap stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index.