Sentences with phrase «earnings ratio as»

The company is trading at about the same forward price - to - earnings ratio as the S&P 500.

Well, a couple of years back there were some investors who actually took the high price to earnings ratio as a clear signal to invest in bonds.

On that same note, as you read this introductory article and discover how useful the P / E ratio can be, keep in mind you can't always rely on price - to - earnings ratios as the be-all-end-all yardstick in determining whether a company's stock is expensive.

Not exact matches

After all, «value» stocks typically boast low price - earnings ratios and other traditional assessment metrics, often looked upon as undervalued relative to its underlying fundamentals.

Using the cyclically adjusted price - to - earnings (or CAPE) ratio, a metric that he created, Shiller said he «would be inclined to recommend» what he sees as «undervalued» stocks.

The loss and LAE ratio as used in this earnings release is calculated in the same manner as the SAP ratio.

The combined ratio as used in this earnings release is the equivalent of, and is calculated in the same manner as, the SAP combined ratio except that the SAP underwriting expense ratio is based on net written premiums and the underwriting expense ratio as used in this earnings release is based on net earned premiums.

And if the bank continues to keep the ratio of its revenue paid as compensation lower than usual, it could result in savings of about $ 300 million for the company in the year, according to an estimate from Autonomous Research's Guy Moskowski in the bank's earnings call.

The differences in opinion arise primarily over valuation and whether its rapid growth can continue to justify a price - to - earnings ratio that rarely falls below 40 and has peaked as high as 138.

Over that past 20 years, the price - to - earnings ratio of the Nasdaq Biotechnology Index has averaged 2.3 times the S&P 500 P / E ratio; today, the current ratio is mere 1.3 x, a 54 percent discount to its 20 - year average (according to Thomson Reuters, as of Sept. 26, 2017.)

FORTUNE — The ratio of share price to annual earnings — usually expressed as P / E or simply PE — is the simplest and most widely used metric to gauge the relative value of a pair of companies.

Most don't have high price - to - earnings ratios, and their cash flows are as predictable as any utility.

When choosing countries to invest in, Langham looks at the price - to - book ratio of the national stock indexes rather than price - to - earnings, as it's difficult to predict profits in a weak economic environment.

Metrics such as P / E ratio (price - earnings ratio), dividend yield, payout ratio and dogmas like the believe in dividend aristocrats are omnipresent.

Value investors and non-value investors alike have long considered the price earnings ratio, which is also known as the p / e ratio for short, a useful metric for evaluating the relative attractiveness of a company's stock price compared to the current earnings of a firm.

The price to earnings ratio of a drug company is going to be less useful than the price to cash flow ratio as a result of these accounting rules.

In the aftermath of the Great Recession of 2008 - 2009, technology stocks traded at lower price - to - earnings ratios than many other types of businesses, such as consumer staples, because investors were frightened.

Some analysts link criteria to performance and / or valuation metrics such as earnings - per - share growth (EPS) or the price - to - earnings (P / E) ratio.

As earnings is calculated based on General Accepted Accounting Principles (GAAP), a company could show a high payout ratio, but a lower cash payout ratio.

Equity markets have appreciated sharply in recent years, and valuations, based on price - to - earnings ratios, in developed markets were not cheap relative to their historical averages as of late 2017.

We do this using valuation metrics such as the Price - to - Earnings Ratio, Price - to - Book Ratio, or Earnings Yield.

The net debt to earnings before interest, depreciation, and amortization (EBITDA) ratio is a measurement of leverage, calculated as a company's interest - bearing liabilities minus cash or cash equivalents, divided by its EBITDA.

Yet investors have not substantially marked down P / E ratios, as if high rates of future earnings growth can be expected to resume despite never having actually existed in any sense that's relevant to shareholders.

This is one reason why the S&P 500 trades at a price / book value ratio of nearly 6, compared to a historical norm below 2.0: companies have created virtually no underlying shareholder value by retaining earnings rather than paying them out as dividends.

Remember that if the S&P 500 P / E ratio could be held constant, prices would by definition grow at the same rate as earnings.

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.

But stock performance has actually outpaced gains in earnings, and as a result, US equity valuations appear stretched as we begin 2018 — for example, the S&P 500's price - earnings ratio is well above longer - term historical averages.

Among them is the airlines industry, which as of today has a very reasonable price - to - earnings ratio of 9.97.

Overall, earnings and capital ratios have enjoyed a reprieve in the past couple of quarters, but delinquencies have not, and all evidence points to an acceleration as we move into 2010.

Rapid share price growth and high valuations based on standard metrics, such as price / earnings ratio or price / sales, characterize a tech bubble.

As a rule of thumb, we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5 (this figure corresponds to 15 times earnings and 1 1/2 times book value.

And in the stock market itself, price / earnings ratios are falling as the credit that fueled stock - market speculation by hedge funds and other arbitrageurs is cut back.

US large - cap stocks returned more than 9 percent in the first half of 2017, the most since 2013, and although prices are close to all - time highs, analysts are of the opinion that valuations are not very expensive for a majority of these stocks, as stronger earnings upped the price - to - earnings ratio, which has generally remained above average for quite a few years.

«The P / E ratio is a familiar metric for many investors, as there tends to be a lot of information out there about earnings,» Brad says.

Longer - term metrics, such as cyclically adjusted price - to - earnings, or CAPE, ratios, are even more troubling, suggesting that U.S. stocks are likely to produce, at best, average to below - average returns over the next five years.

It was earning $ 2.28, and someone that bought the stock would have locked in an earnings yield of 4.34 % as the P / E ratio was 23.

A company that has taken on lots of debt to fund expansion will likely have a better P / E ratio than its peers as the money it is borrowing doesn't reduce earnings.

The remaining stocks are assigned a rank based on the ratio of their dividend yield to payout ratio (the same as a trailing earnings / price ratio, or the inverse of the trailing P / E ratio).

In conjunction with stock valuation ratios like the price - to - earnings ratio and the price - to - earnings - growth ratio, a stock's measure of volatility known as beta can help investors build a diversified...

In VFC's case, that basic estimate is based on reference point price - to - earnings ratio (P / E) of 15, which is the long - term average P / E of the stock market as a whole.

In an attempt to cast light on this issue, my colleagues at Plexus Asset Management have updated a previous multi-year comparison of the price - earnings (PE) ratios of the S&P 500 Index (as a measure of stock valuations) and the forward real returns (considering total returns, i.e. capital movements plus dividends).

As a result, the S&P 500's price / earnings ratio has fallen to its lowest level since 1997 — although it remains well above its long - term average (Graph 22).

The price / earnings ratio also known as the P / E ratio is the most common way to find out how expensive a stock is.

It is expressed as a percentage of the investment value and is the reciprocal of the price / earnings (PE ratio).

Stock investments have varying growth prospects and are typically analyzed based on characteristics such as estimated future earnings and price - to - earnings ratios.

We observed this as high profit margins (high earnings / sales), high return on equity (high earnings / book value), and low dividend payout ratios (dividends / high earnings).

In addition to the earnings payout ratio, you should also look at Free - Cash - Flow payout ratio as most companies would pay their dividends out of FCF.

The IMF cited the rapid decline in the average coverage ratio over the past two years — the ability of current earnings to cover interest payments — as its primary evidence.

Just looking at price to earnings ratios in a period of rising cash software spend will paint an overly rosy picture for as long as a company's cash spend is higher than the amortisation.

When dealing with growth stocks, the P / E ratio is the current price per share divided by earnings per share (also known as the EPS).