Sentences with phrase «earnings ratio gives»

The Price to Earnings ratio gives us the ability to judge whether a stock is reasonably priced or not.

Not exact matches

Given the current price - to - earnings ratio of the S&P 500, a 10 - percentage - point reduction would imply a 11 % gain for the S&P 500, to 2,450.

At Berkshire Hathaway's recent annual shareholders meeting, an investor asked Buffett about the relevance of two popular measures of stock market value: 1) market cap - to - GDP, which Buffett once heralded as «probably the best single measure of where valuations stand at any given moment» and 2) the cyclically - adjusted price - earnings ratio (CAPE), which was made famous by Nobel prize winner Robert Shiller and was seen as accurately predicting the dot - com bubble and the housing bubble.

However, the company reaffirmed its 2011 earnings guidance of $ 2.28 — $ 2.33 / share, giving it a price / earnings ratio for 2011 near 13.

Earnings / Macro Pulse: But if you look at a couple of key indicators we track: the «nominal surprise index» (this tracks a combination of the Citi US inflation surprise index and the economic surprise index - giving a view on how the inflation and general economic data is turning out vs expectations), and the «earnings revisions indicator» (this combines earnings revisions ratio and the rate of change in forward eaEarnings / Macro Pulse: But if you look at a couple of key indicators we track: the «nominal surprise index» (this tracks a combination of the Citi US inflation surprise index and the economic surprise index - giving a view on how the inflation and general economic data is turning out vs expectations), and the «earnings revisions indicator» (this combines earnings revisions ratio and the rate of change in forward eaearnings revisions indicator» (this combines earnings revisions ratio and the rate of change in forward eaearnings revisions ratio and the rate of change in forward earningsearnings).

At any rate, though, Atwood trades for just a 5.6 P / E right now, and earnings are at least expected to be stable, so given the ultra-low payout ratio, I think we'll see dividend growth above 10 % / year for several years to come.

That payout ratio is higher than most other water utilities that are publicly traded, however, given the predictability of earnings, I can accept that.

The company's stock price per share divided by their earnings per share gives us the price to earnings ratio.

A growth investor would give more weight to increases in a stock's sales per share or earnings per share (EPS) than to its P / E ratio, which may be irrelevant for a company that has yet to produce any meaningful profits.

Wajax also trades at a low price - to - earnings ratio of 11.5, based on this year's forecast profits, and its recent 35 % dividend increase gives it a high 6.8 % yield.

Richard Ramsden, who heads Goldman's financials group in global investment research, says: «Banks can grow their dividends by roughly 20 % to 25 % per year over the next few years, given that both payout ratios and earnings will be growing for the banking system.»

Consideration will be given to companies demonstrating improving fundamentals as well as reasonable valuation in terms of commonly available ratios including price / earnings, PEG, and price / sales ratios.

When given the choice between similar sin stocks in the same industry, I stuck to larger firms, with relatively little debt, that trade at modest price - to - earnings ratios.

This gives them a Price - to - Earnings ratio of 25.39.

Price - earnings ratios can give you a sense of whether the stock market is pricey relative to historical valuations.

So sum the most recent four quarters of Diluted Normalized EPS from Fairfax's income statement — that gives the «earnings» portion of their Price - to - Earningearnings» portion of their Price - to - EarningsEarnings ratio.

Andrew Roberts, the bank's credit chief, said both global trade and loans are contracting, a nasty cocktail for corporate balance sheets and equity earnings, and uncharted waters given that debt ratios have reached record highs.

Percentile rank of price - earnings ratio is below a given measure (i.e., percent rank less than or equal to 20 %)

(A backtest is simply a statistical look at historical data to determine whether employing a given investment factor, such as selecting stocks with low price - earnings ratios, results in excess returns over time; i.e., returns above a stock market benchmark.)

Dividing portfolio value by portfolio earnings claims gives a ratio of 26.25 — the price to earnings ratio (PE) of the portfolio.

The price - to - earnings ratio of Praxair's competitors is shown below to give an idea how the company's valuation compares to its peers:

Earnings per share were $ 2.26, up 9.2 % from 2013, giving the company a current payout ratio of 55 % based on the current dividend of $ 1.24.

Earnings per share were $ 1.41, down 16.1 % from 2013, giving the company a current payout ratio of 27.7 % (based on the current annualized dividend rate of 39 cents).

This biases forward P / E ratios down giving the impression that a stock commands a low P / E, when in fact it may not be as earnings are eventually revised downwards and what appeared at first to be a value stock may, in fact, turn out to be a high P / E stock.

A value ratio that gives investors an idea of how much they are paying for a company's earnings.

We note also that the Tax Reform bill will likely increase earnings for many companies next year, which will likely reduce the dividend payout ratio in the near term and give companies even more room to raise dividends.

SPLS and GRMN, however, do give reason to pause and do additional research because of their high ratios (their dividends could be at risk of reduction if earnings do not improve).

Common characteristics associated with stocks selling at less than 66 % of net current asset value are low price / earnings ratios, low price / sales ratios and low prices in relation to «normal» earnings; i.e., what the company would earn if it earned the average return on equity for a given industry or the average neti ncome margin on sales for such industry.

I've been giving Robert Shiller's cyclically - adjusted price earnings ratio a run on Greenbackd recently (see 73 - Year Chart Comparing Estimated Shiller PE Returns to Actual Returns, On The Great Shiller PE Controversy: Are Cyclically - Adjusted Earnings Below The Long - Terearnings ratio a run on Greenbackd recently (see 73 - Year Chart Comparing Estimated Shiller PE Returns to Actual Returns, On The Great Shiller PE Controversy: Are Cyclically - Adjusted Earnings Below The Long - TerEarnings Below The Long - Term Trend?

Earnings per share were $ 3.01, up 7.9 % year - over-year, giving the company a payout ratio of 45.2 % (using the 2015 dividend of $ 1.36.

Given that stock valuations are often viewed through the lenses of EPS and the related price - earnings ratio, higher EPS justifies (and can lead to) a rising share price.

An earnings yield of 6 % to 7 % (P / E ratio 15) would be the minimum that a rational investor should expect given the risk associated with investing in common stocks.

The company's stock price per share divided by their earnings per share gives us the price to earnings ratio.

Given that a standard valuation is closer to 10 or 15 times earnings, a PE ratio of 30 implies that investors foresee a lot of growth.

It is in a cyclical business so earnings could fluctuate, however, the strong balance sheet and powerful brand combined with low payout ratio gives the dividend a significant margin of safety.

However, the company reaffirmed its 2011 earnings guidance of $ 2.28 — $ 2.33 / share, giving it a price / earnings ratio for 2011 near 13.

While that's not necessarily a truly accurate way to value the stock's cash flow and earnings power, it does give us some relative insight when comparing it to the stock's own five - year average P / E ratio of 64.7.

GARP investing gives priority to one of the popular value metrics — price - to - earnings (P / E) ratio.

Earnings per share were 86 cents giving the company a payout ratio of 60.5 %, based on the company's current dividend of 52 cents a share.

While the company's payout ratios have been climbing in the past few years, a level near 50 % or less in both earnings and free cash flow (where the ratios have stabilized) gives the company plenty of safety buffer should unexpected cost overruns result in a poor earnings year.

Financial ratios are ratios that give you an idea of how under - or over-valued a stock may be in terms of its earnings and cash flow, as well as how sound its balance sheet is and so on.

That gives you the earnings payout ratio.

y = HSWR80 Calculated Rate (percent) and x = percentage earnings yield = 100 / [P / E10] 1923 - 1930 y = 0.5515 x + 2.5346 1923 - 1940 y = 0.5274 x + 2.3765 1923 - 1950 y = 0.6276 x + 2.2028 1923 - 1960 y = 0.6473 x + 2.1637 1923 - 1970 y = 0.7312 x + 1.379 1923 - 1980 y = 0.6685 x + 1.6424 y = HSWR80 Calculated Rate (percent) and x = percentage earnings yield = 100 / [P / E10] 1931 - 1940 y = 0.4456 x + 2.7071 1931 - 1950 y = 0.7189 x + 1.5714 1931 - 1960 y = 0.7459 x + 1.5098 1931 - 1970 y = 0.8419 x + 0.6639 1931 - 1980 y = 0.7117 x + 1.3346 I scaled my previous confidence limits of 1.58 % (for HSWR80) by taking the ratio of the Student t test confidence limit for a given number of freedom to that with 60 degrees of freedom.

So the ratio of total market cap to GNP should be higher today (given 50 % of S&P earnings are from overseas) compared to the past.

The aim of this paper is twofold: to provide a theoretical framework and to give further empirical support to Shiller's test of the appropriateness of prices in the stock market based on the Cyclically Adjusted Price Earnings (CAPE) ratio.

Using the December 2009 quarter the earnings forecast $ 39.35 and a PE ratio of 30 gives us a target price for the S&P 500 index of 1,181.

Price - earnings ratios, dividend amounts and changes in dividends, and earnings and changes in earnings all gave cause for stock price optimism.

Given the payout ratio based on next year's earnings is just 20 % this dividend payout could be frequently and significantly boosted higher in coming years as the clamps start to come off the banking sector over the medium term as balance sheets continue to be in much better positions since the financial crisis.