Sentences with phrase «books on equity valuation»

Not exact matches

During that earlier period, American business earned an average of 11 percent or so on equity capital employed and stocks, in aggregate, sold at valuations far above that equity capital (book value), averaging over 150 cents on the dollar.

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation metrics (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.

Thus, traders and investors using aggregate financial accounting numbers to derive superficial financial ratios (e.g. profit margin, return - on - equity) and valuation (e.g. low price - to - earnings, low price - to - book) without understanding the underlying business model, the related - party transactions artificially inflating the aggregate financial numbers and the data generation process in the financial footnotes can be misled.

Sberbank's valuation is something else... a Return on Equity of 27.1 %, and a 2012 estimated Price / Book of only 1.5, wow!

The book discusses the basics of valuation through return on equity, how to identify a «good» businesses with sustainable competitive advantages (moats), diversification, how to understand the capital structure, and the implications of the economy for the business analyzed.

Historically it has been mean reversion of valuation ratios like price to book and price to earnings which have had the greatest effect on long term equity returns.