Sentences with phrase «earnings ratio does»

Remember, a low Price to Earnings ratio does not always mean guaranteed success.

Even if the price - to - earnings ratio doesn't shift, the Index should still see a healthy return for 2012 on earnings growth alone.

Price to Earnings Ratios do predict future market returns to some degree.

The ratio examines several financial statement items that other multiples like the price - to - earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization and capital expenditures.

The ratio examines several financial statement items that other multiples like the price - to - earnings ratio do not, including debt, preferred stock, and minority interests; and interest, -LSB-...]

It examines several financial statement items that other multiples like the price - to - earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization and capital expenditures.

Not exact matches

So what does it mean that the price / earnings ratio is no longer 100:1?

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

Price - earnings ratios may be helpful when looking at valuations, but they don't tell the entire story and must be considered in context.

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

Whilst being an easily calculated and forward looking valuation ratio, the Forward P / E does depend upon earnings estimates being up to date.

There is probably truth in both of those, but I do think it is important, in considering claims of irrational exuberance, to note that the earnings price ratio - interest rate relationship is in a very difference place than it has been in past peaks.

How does the U.S. stock market earnings yield (inverse of price - to - earnings ratio, or E / P) interact with the U.S. inflation rate over the long run?

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.

While we don't know exactly how Vanguard selects these value stocks, we can guess that they are trading at P / E ratios that are relatively low based on current and future earnings.

Energy names Marathon Oil and Murphy Oil are actually expected to report losses rather than profits, which is why they don't have price - to - earnings ratios at all.

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...

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.

Formula Price - Earnings Ratio = Price per share ÷ Earnings per share P / E Calculation for PAAS Price per share = $ 16.55 Earnings per share = $ 0.79 ∴ Price - Earnings Ratio = $ 16.55 ÷ $ 0.79 = 20.9 x On its own, the P / E ratio doesn't tell you much; however, it becomes extremely useful when you compare it with other similar compaRatio = Price per share ÷ Earnings per share P / E Calculation for PAAS Price per share = $ 16.55 Earnings per share = $ 0.79 ∴ Price - Earnings Ratio = $ 16.55 ÷ $ 0.79 = 20.9 x On its own, the P / E ratio doesn't tell you much; however, it becomes extremely useful when you compare it with other similar compaRatio = $ 16.55 ÷ $ 0.79 = 20.9 x On its own, the P / E ratio doesn't tell you much; however, it becomes extremely useful when you compare it with other similar comparatio doesn't tell you much; however, it becomes extremely useful when you compare it with other similar companies.

By 2000, most states had earnings ratios near 100 percent for all aptitude groups, indicating that graduates of the most highly selective colleges earned no more as teachers than did graduates from bottom - tier schools!

Answering your more general question, what do I think of this particular Price / Earnings based ratio as a way to signal asset allocation change i.e. Valuation Informed Investing?

The PE ratio has meaning, and therefore analytical value, it is an indicator of confidence of maintaining earnings, but if you make buy and sell decisions based on the PE ratio all you are doing is letting yourself be lead by the market (be it directly or inversely).

Henning defines this type of divergence as an increase in earnings per share that does not lead to an increase in the price - earnings ratio or an increase in share price.

To do this, he compares the current price - earnings ratio based on earnings for the trailing 12 months (last four fiscal quarters) to the forward price - earnings ratio based on estimated earnings.

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

Because earnings measured over shorter horizons such as one year are extremely volatile and mean reverting, the ratio of prices to current earnings does not predict future long - term returns.

We did not include quality measures related to the quality of corporate governance or practitioner - oriented measures of investment quality, e.g., earnings - to - price ratios or low volatility.

Investors still cite the low costs of ETFs, but with the S&P 500 trading at a P / E ratio of 21x of higher, and earnings growth remaining persistently low, Narhi and Barr don't think equity valuations are worth the risk.

That does not mean that all stocks with low price - earnings ratios have little or no growth prospects.

And you could look at the P / B ratio of 1.3 to determine valuation, but what I do is compare the P / B ratio to the ROE, which essentially values the business using a price to earnings ratio rather than price to book.

He liked to buy stocks at low price to book ratios, and when he did look at earnings, he liked low prices to normalized earnings

This paper brings an accounting perspective to the issue: earnings and book values are accounting numbers so, if the two ratios indicate risk and return, it might have something to do with accounting principles for measuring earnings and book value.

Despite the solid returns, the median price - to - earnings ratio (P / E) for Canadian dividend payers didn't change much, which implies that earnings grew at a similar rate.

At a price - to - earnings ratio of 5, the company should do well, provided commodity prices don't collapse.

Do you honestly not understand the difference between using 10 - yr adjusted real earnings and 10 - yr adjusted nominal PE ratios?

If I were to use the PE ratio to put together a portfolio, though, I'd want to do some digging and refine the list to screen out one time earnings windfalls, highly volatile earnings, etc, to get to normalized earnings.

Because eREITs have very high depreciation write - offs which are tax accounting entries that do not affect cash flow, the usual metrics of earnings per share (EPS) and price earnings ratios (P / E) are not meaningful for eREIT financial reporting.

Shiller's research showed that CAPE ratios do not predict future growth rates; he found that some of the strongest mean reversion in the capital markets is between past and future earnings growth rates.

If this is done in sufficient volume, stock prices generally will rise to historically unusual price / earnings ratios.

This is a solid and sustainable growth rate for the company — it just does not justify a price - to - earnings ratio of over 30.

However, utilities in general tend to have higher payout ratios (they pay higher percentages of their earnings to shareholders), because most do not undertake significant expansions or huge new investment such that it is unnecessary to retain large percentages of their free cash.

While those elevated P / E ratios had taken into account higher earnings per share based on the tax overhaul, they did not take into account significantly higher borrowing costs that might exist 12 months later.

When this happens (all business cycles eventually do come to an end) we'll be left with double valuation headwinds: falling earnings forcing high valuation multiples higher and higher stock / bond relative PE ratios.

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).

I don't think the composition of earnings should change the ratio, but you can look at the other posts here using different metrics (for example, Buffett's preferred metric total market capitalization - to - gross national product).

On the other hand, if one is more inclined to incorporate profit margins and GDP into the cyclically - adjusted price - to - earnings ratio (PE10), as Michael Lebowitz of 720 Global does, then stock overvaluation has never been more extreme.

One way to determine a stocks value can be done by looking at its Price - to - Earnings ratio.

3) Victor Niederhoffer did a study of P / E ratios (a full chapter in «Practical Speculation») and concluded that you can't make money from them, partly because of after - the - fact corporate earnings data revisions which contaminate the S&P database.

I filtered out ADRs, non-US companies, companies in the miscellaneous financial services industry category (to mainly filter out closed - end funds), stocks trading below $ 2, market caps less than $ 433 million (approximately matching the average cut - off Tortoriello used), and companies that did not have a current fiscal year earnings to price ratio due to missing data.

How do you judge a company's price - earnings ratio?