Sentences with phrase «earnings ratio indicates»

A high price / earnings ratio indicates that investors are expecting more growth in the future.

Not exact matches

You may also want to look at its price - to - earnings ratio — if its P / E is low, that indicates that it's selling for a relatively cheap price — forward - looking earnings and current price relative to its 52 - week high and low.

Our analysis suggests price - to - earnings ratios in Europe indicate that the market has been pricing in improving economic and earnings growth, but has not become euphoric.

Typically, I like this ratio to be well below 80 % as it would indicate a sustainable dividend yield with room for future growth based on current earnings.

In summary, current S&P 500 earnings forecasts indicate 12 - month trailing earnings - price ratios rising from below to above generational «normal» over the next two years.

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!

For example, Realty Income's payout ratio using earnings as the divisor would indicate that it is paying out more than 200 % of its profits as dividends.

A high ratio indicates that the market expects future earnings to grow quicker than a company with a low P / E.

Telus's dividend payout ratio (dividends divided by earnings) is a reasonable 53 %, which indicates that its dividend is well covered by earnings.

Between 1995 and the financial crisis, the average price - to - earnings (P / E) ratio of the S&P 500 utilities sector was roughly 25 percent below the P / E of the broader market, as Bloomberg data indicates.

The median P / E ratio has fallen from about 19 times earnings last year this time, which indicates a clear improvement in the valuation of the typical stock in the index.

This issue's focus is on firms with possible «hidden» earnings, indicated by a record of positive free cash flow that is currently greater than earnings and that are trading with low price - to - free - cash - flow ratios.

Intel's low debt - to - equity ratio of 2.5 % indicates that very little long - term debt is issued by the company, while its payout ratio of 9.3 % indicates the majority of earnings are retained for use by the company.

Whereas previous research hinted that the price - to - book (P / B) ratio was superior to the price - earnings ratio in selecting undervalued stocks, other research indicated that using price - to - sales ratios may lead to better investment results than P / B ratios or P / E ratios.

The Fund buys at the time the near - term outlook is poor provided the company is well capitalized, if our analysis indicates that the common shares are available at a low price earnings ratio relative to long - term future earning power and / or are selling at a substantial discount from an adjusted, and measurable, net asset value.

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.

The Shiller P / E ratio — calculated by dividing the current level of the S&P 500 by the 10 - year average of real earnings — indicates that U.S. stocks are expensive.

While different industries have different appropriate payout ratios, typically payout ratios higher than 70 % indicate a dividend cut may be on its way, while below 70 % means the dividend is likely sustainable and there are additional earnings to support further dividend increases.

Popular metrics of aggregate market valuation, such as Wilshire Total Market Index to U.S. GDP, price to forward earnings ratio, price to book value ratio, price to cash flow ratio, cyclically adjusted price to earnings ratio (CAPE), the ratio of annual forward dividend to price (dividend yield), indicate the U.S. stock market is overvalued by between 10 per cent and 60 per cent.

A debt ratio that tests the ability of a company to pay the interest charges on its debt and indicates how many times these charges are covered based upon earnings available to pay them.

On top of that, I want companies with low payout ratios — how much the dividend is as a percentage of earnings — because that indicates that there's room for more, and generous, dividend increases along the line.

The «usual suspect» metrics like P / E ratios, dividend yield and expected earnings growth indicate that the company might be a reasonable investment.

Just as a high PE (low earnings yield) indicates that buying an earnings stream is relatively expensive, a low dividend yield (high price to dividend ratio) or yield to maturity tells us that buying income is relatively expensive.

For example, a company with a high dividend yield and low dividend payout ratio (or high dividend coverage ratio) indicates that the company's dividend yield is supported by its strong earnings.

Rather, we believe it is important to measure whether the ratio of debt to earnings indicates whether a student is able to manage debt both in the early years after completion, and in later years, since students must be able to sustain loan payments at all stages, regardless of the benefits that may accrue to them over their entire career.

A high payout ratio could also indicate that a company is having a hard time raising earnings.

AAII Stock Ideas Screening for Value Using the Fundamental Rule of Thumb AAII Stock Screens: The Fundamental Rule of Thumb screen combines earnings yield, dividend yield, and the ratio of earnings retained to book value to produce a score that can help indicate if a stock merits further analysis.

This ratio indicates how low - priced the stock is in relation to its earnings growth.