Sentences with phrase «earnings ratio by»

I define current price - earnings ratios by the ttm (trailing twelve months) figures.

Not exact matches

The forward price / earnings ratio of the top 25 % of S&P 500 stocks by dividend yield is 17, vs. a 36 - year average of 12, according to Ned Davis Research.

Shiller's CAPE ratio measures the stock price divided by the average of ten years of earnings, adjusted for inflation.

To calculate today's earnings yield, and hence the cost of capital, we'll use the «cyclically adjusted price - to - earnings» ratio, or CAPE, developed by Yale economist Robert Shiller.

The latest calculations were based on an earlier finding by the groups that earnings for CEOs in the U.K.'s benchmark FTSE 100 dropped by a fifth in 2016 to 4.5 million pounds ($ 5.4 million) annually and another showing a CEO - to - worker pay ratio of 120 to 1.

So it requires a blend of pro forma cash flows, tangible assets, financial and industry ratios, earnings multiples and a wide range of «comps,» all shaded by investor sentiment, personal gut feeling and a healthy dose of reasonableness.

Most public - company stocks are valued by their price - to - earnings, or P / E ratio, but Twitter has no earnings.

The forward price / earnings (PE) ratio — the price of the S&P 500 divided by the expected earnings of those S&P 500 companies — is probably the most popular way to measure value in the stock market.

In other words, if a company is reporting basic or diluted earnings per share of $ 2 and the stock is selling for $ 20 per share, the p / e ratio is 10 ($ 20 per share divided by $ 2 earnings per share = 10 p / e).

This is especially useful because, if you invert the p / e ratio by taking it divided by 1, you can calculate a stock's earnings yield.

By the time that decade ended, price - to - earnings ratios were in the single digits — but you had little or nothing to show for buying cheap equities during the prior 15 years; and that's before accounting for very high inflation.

Often these stocks have the highest P / E ratios (stock price divided by 12 - month earnings per share), and market timing is, therefore, particularly important.

The CAPE ratio (cyclically adjusted price - earnings ratio), a widely followed measure designed by Yale economist Robert Shiller that compares stock prices to corporate earnings, is currently at about 32, or double its historical median of 16.

The first is to look at the well - known price - to - earnings (P / E) ratio, or the stock price divided by the company's earnings per share (EPS).

This ratio is calculated by dividing the current Price by the sum of the Basic Earnings Per Share from continuing operations BEFORE Extraordinary Items and Accounting Changes over the last four quarters.

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.

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.

To calculate the interest coverage ratio using the figures found on the income statement, divide EBIT (earnings before interest and taxes) by the total interest expense.

One important metric used is the price - to - earnings ratio, or, the current price of the stock divided by the average earnings per share (yearly revenue divided by the number of outstanding shares).

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.

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.

Often a company's Payout Ratio can be lower if it's based on Cash Flow because the earnings can be affected by items like depreciation that have no bearing on how much real cash is available.

Price - to - earnings (P / E) ratio takes the current price of a stock divided by its earnings per share.

Price - to - Earnings Ratio (P / E Ratio)-- How much a stock costs relative to how much the company earns per share of stock; calculated by dividing the stock price by the company's earnings per shaEarnings Ratio (P / E Ratio)-- How much a stock costs relative to how much the company earns per share of stock; calculated by dividing the stock price by the company's earnings per shaearnings per share (EPS)

This shows various ranges of 10 year stock market returns going back to 1900 color - coated by their starting cyclically adjusted price to earnings ratio (CAPE).

Notes: Price: Closing price per share; P / E: Price to earnings ratio; Total Return: The total return generated by the stock over the last year.

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.

The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) gauges the attractiveness of equities versus bond yields.

The injury of lower - than - expected earnings is usually compounded by the insult of a lower price - earnings ratio» Frank Martin

From an analytical perspective, nothing affects the stock market except by affecting these three factors: dividend payouts, earnings growth, and P / E ratios.

That basic estimate is based on a standard reference price - to - earnings (P / E) ratio of 15, which is shown by the orange line on the following chart.

You find a P / E ratio by dividing a stock's share price by the earnings per share, or EPS, which is simply the total net profits from the last year divided by the total number of outstanding shares.

A stock's PEG ratio — its price - to - earnings ratio divided by the growth rate of its earnings — often is considered a more complete assessment of a company's current valuation than a P / E ratio because it takes earnings growth into account.

UNP's payout ratio is 36 % leaving the dividend well covered by earnings and plenty of room to continue to grow their dividend.

The basic valuation estimate uses a reference price - to - earnings (P / E) ratio of 15 multiplied by the company's earnings, which is shown by the orange line on the following chart.

«The other is the price - to - rent ratio, which is analogous to the price - to - earnings ratio used for equities, with rents going to landlords (or saved by homeowners) equivalent to corporate profits.

The Magic Formula diverges from Graham's strategy by exchanging for Graham's absolute price and quality measures (i.e. price - to - earnings ratio below 10, and debt - to - equity ratio below 50 percent) a ranking system that seeks those stocks with the best combination of price and quality more akin to Buffett's value investing philosophy.

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).

The earnings yield (earnings per share divided by the share price, or the inverse of the price - to - earnings ratio) still looks attractive versus real (after inflation) bond yields, meaning stocks may be cheaper than they look in a low - rate world.

There are two simple ratios using accruals not often reported or put on financial websites but they do explain the state of quality of earnings, they are calculated by using two different approaches Balance sheet approach Calculate Accruals which is difference between beginning and ending NOA (Net operating assets) Here, NOA = Net operating assets = -LCB-(Total assets — cash and equivalents and investments)--(Total...

The PE ratio (price - to - earnings ratio) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.

While we don't believe we're in bubble territory, valuations for many sectors are high — with P / E ratios driven more by price expansion (the «P») than by the more meaningful «E» of earnings.

With an expected growth rate just under 14 %, Smith & Wesson stock currently sells for a PEG ratio (price - to - earnings, divided by growth) of 0.96.

The P / E ratio looks at the current price divided by the earnings per share.

These periods are driven by generally rising multiples of valuation as measured by the price / earnings ratio (P / E).

The inverse, known as the earnings yield, is 6.67 percent (take 1 and divide it by the p / e ratio of 15 = 6.67).

By contrast, Microsoft had a price - to - earnings ratio of 83 at the 1999 peak.

Netflix's stock valuation has been a constant source of debate for years, and currently is trading at a price - to - earnings (P / E) ratio of 123x, which is rich by almost every measure — no matter what kind of business model it is.