Sentences with phrase «earnings yield measures»

Earnings yield measures the inexpensiveness of a company by dividing its past 12 - months earnings before interest and tax, to its current enterprise value (enterprise value = market value + debt — cash).

Not exact matches

It's the total earnings - per - share the market generates as a percent of the market's total value — a measure similar to the yield on bonds, where the yield rises when bond prices fall, and vice versa.

The analysis used to calibrate next year's index view involves nine different methods, including a normalized earnings yield gap approach, the P / E Bulls - Eye, currency measures, and consumer confidence, which supports a 1,900 year - end result for the S&P 500 - 4 % above the previously released June 2014 expectation of 1,825.

There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings yield relative to the Treasury bond yield basis.

It's common to object to the dividend yield as a measure of valuation, given that companies have devoted more of their earnings to stock repurchases than dividend payments in recent years.

Our paper examines a comprehensive suite of volatility measures including actual volatility, volatility implied by option pricing, beta, credit default spreads, preferred stock yields and earnings price ratios.

Value can be determined by a variety of measures, including price - to - earnings ratio, price - to - book ratio, or dividend yield.

Effectively, a high yield (D / P) is just the inverse of a low price - to - dividend ratio (P / D), a cheapness measure similar to a low price - to - earnings or low price - to - book ratio.

As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.

Do you believe that libraries are important for book and author discovery, and do you believe that library borrows yield platform - building benefit that has value to you not measured by your theoretical earnings per borrow (if your book is borrowed only once ever, then your earnings per borrow = the price you sold the book at.

This is true whether you measure S&P 500 valuation by the cyclically - adjusted price - to - earnings ratio, the market - capitalization - to - GDP ratio, the price - to - book - value ratio, the average dividend yield, or most other valuation metrics.

Dr. Ed Yardeni says they aren't, using the real earnings yield as a measure.

Since 1962 the yield on the U.S. 10 - year Treasury note has explained roughly 25 % to 30 % of the variation in U.S. large cap equity multiples, as measured using the trailing price - to - earnings (P / E) ratio in the chart below.

Buy solid companies currently out of favor, as measured by their low price - to - earnings, price - to - cash flow or price - to - book value ratios, or by their high yields.

Higher yields signal a lower valuation, though other measures, such as the price - earnings ratio, should also be considered.

A good way to think about this measure is that a company with twice the earnings yield as another is half as expensive.

Value can be determined by a variety of measures, including price - to - earnings ratio, price - to - book ratio, or dividend yield.

1) Earnings Yield — This measures how inexpensive a company is in relation to its demonstrated ability to generate cash for its owners.

By almost any measure — dividend yields, price - earnings ratios, cyclically adjusted price - earnings ratios, Tobin's Q — U.S. stocks appear expensive.

Ex-Fed Chairman Greenspan's favorite way of measuring relative valuation between Stocks and Bond is the Earnings - Yield to Bond - Yield ratio.

Joel Greenblatt focused on earnings yield and ROIC, and found that ranking US companies based on these measures and investing on a consistent basis in the top companies resulted in an outperformance of 23 % compared with the benchmark.

A Review of the Evidence, in which Fernando Duarte and Carlo Rosa argue that stocks are cheap because the «Fed model» — the equity risk premium measured as the difference between the forward operating earnings yield on the S&P 500 and the 10 - year Treasury bond yield — is at a historic high.

For the individual, that attempts to measure the amount needed to meet future obligations where future investment earnings are calculated at a conservative level — my initial rule of thumb is no more than 1 % above the 10 - year Treasury yield.

The Paradox of the Zero Bound Subpar Economic Recovery Gets Premium Market Valuation Wall Street Earnings Expectations Ignore Economic Divergences The Great Divergence An Update on International Market Valuations Business Cycles, Election Cycles, and Potential Risks An Update on Valuations and Forward Earnings Assumptions Bond Yields, Earnings Yields, and Inflation A View from the NBER Recession Indicators Three Observations on Third Quarter Earnings Forward Looking Measures Still Don't Provide Evidence for a V - Shaped Recovery This Earnings Season, Watch Sales Forward Earnings Imply a Return to Near - Record Profit Margins Without Phoenix Stocks, Volume Continues to Contract Is the Job Market Ready for a Recovery?

To make a comparison possible of dividend yield's performance to the performance of book, earnings and cashflow over the same period, I also measured the returns beginning in 1951.

The other traditional measures of Value are better: price - to - earnings ratio (buy when low) and dividend yield (buy when high).

Dividend yields are constrained by earnings yields, when measured over a number of years.

They include unusually high dividend yields, unusually low per - share price - to - earnings or P / E ratios, or a low ratio of stock price to book value or other measures of per share value.

You can use the dividend yield to quickly measure the cash earnings you'll make from a stock's dividend.

The value of x is the percentage earnings yield 100E10 / P (or 100 / [P / E10]-RRB-, where P / E10 is Professor Robert Shiller's measure of valuation.