His research showed that some sequence of return risk could be mitigated by starting with a lower
equity ratio at the beginning of retirement (if the CAPE > 20).
Australian companies also have a relatively low debt to
equity ratio at 40 per cent for the top 100 countries.
Not exact matches
According to the Bank, corporate Canada's overall debt - to -
equity ratio — under 0.9, down from 1.5 in the mid-1990s — is
at a historic low, the result of two decades of private - sector deleveraging.
Software companies usually sell
at larger p / e
ratios because they have much higher growth rates and earn higher returns on
equity, while a textile mill, subject to dismal profit margins and low growth prospects, might trade
at a much smaller multiple.
The
equities - to - commodities
ratio, as measured by the S&P 500 Index and the S&P GSCI Index, is
at its lowest level in nearly 50 years.
Some European
equity indices — Germany's DAX and France's CAC 40 — are
at long - term price - to - earnings
ratios of around 10 times, well below their historic average.
CVX's debt - to -
equity ratio is very low
at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
Morgan Stanley's Tier 1 capital
ratio, under Basel I, was approximately 15.1 % and Tier 1 common
ratio was approximately 13.1 %
at September 30, 2011.6, 10 The annualized return on average common
equity from continuing operations was 14.5 % in the current quarter.
According to Caixin, the company's debt - to -
equity ratio was formally 121 % prior to bankruptcy, but an independent audit carried out as part of the bankruptcy procedure put the
ratio at a debilitating 217 %.
On the other hand, it is important to note that the spread between earnings price
ratios and real interest rates are
at near record levels, and that is a crude measure of the
equity risk premium.
Currently, EM
equities trade
at a 25 % discount to DM
equities based on the price / earnings
ratio, thus offering better value.
When borrowers request a loan for an amount that is
at or near the appraised value, and therefore a higher loan - to - value
ratio, lenders perceive that there is a greater chance of the loan going into default because there is little to no
equity built up within the property.
The majority of lenders offer mortgage and home
equity applicants the lowest possible interest rate when the loan - to - value
ratio is
at or below 80 %.
Private
equity was tempted to launch a takeover blitz
at a debt - to - cashflow
ratio of 5.4 because debt was made so cheap.
Generally, though, we look
at debt - to -
equity ratios, liquidity, depreciation rates, accounting practices, pension and healthcare liabilities, and «hidden» assets and liabilities.
In our 1Q2015 letter, we noted that
equity - market valuations were
at dangerous levels by three different measures: the CAPE
ratio, the Q -
ratio, and the Buffett indicator, which are discussed
at length in our last letter.
If you're assessing potential investment opportunities, it's worth taking a look
at a company's debt - to -
equity ratio.
At current levels, Japanese
equities are both absolutely and relatively cheap; the
equity risk premium is about 7.8 % and the forward price / earnings
ratio is less than 13.
Looking
at companies» debt - to -
equity ratios can be part of that research.
Their debt to
equity ratio came in
at a whopping 2.38 while most of their competitors have a debt /
equity ratio of 1 or less.
Look
at companies with P / E
ratios at the lowest 10 % of all
equity securities (particularly companies in the same or similar sector).
I prefer companies with less than 0.5 debt /
equity ratios, or
at least less than 1.0 debt /
equity ratios, but it will vary to a certain extent in some industries.
Banks had plenty of deposits (often more than they could loan out), healthier spreads, strong capital
ratios, and returns on
equity at the best banks were in the mid to high teens.
Equity Markets: It's worth noting that
at a forward P / E
ratio of just over 17x for the S&P 500, valuations do not appear to be stretched.
Looking
at the actuarial funded
ratio for state and local pension plans, the aggregate funded status of these plans has significantly declined over the last 15 years despite
equities attaining all - time highs in recent periods.
Novo Banco said in a separate statement on Tuesday that the move will increase it's common
equity Tier 1
ratio, a measure of its ability to absorb losses, to about 13 percent from 9.4 percent
at the end of June.
The debt - to -
equity ratio has also been revised from 2:1 to 3:1 to allow for additional debt financing and
at the same time allow the interest on the debt as an allowable deduction.
The average active
equity fund expense
ratio is around 0.65 %, while bond funds fall in
at roughly 0.50 %.
«We're wary of companies that have seen their debt - to -
equity ratios deteriorate,» said Tim Ng, the chief investment officer
at New York - based Clearbrook Global Advisors, which advises on US$ 28 billion of assets.
When looking
at equity private lenders will calculate a metric called Loan to Value
Ratio (LTV).
Company financial strength is scored by looking
at levels of the current
ratio (current assets divided by current liabilities) and debt - to -
equity ratio (long - term debt divided by
equity and expressed as a percentage).
Look
at the long term solvency of a firm, which can be judged by using leverage or capital structure
ratios such as Debt
Equity Ratio and Debt Assets
Ratio.
I know if by debt to income
ratio is high I may get a higher interest rate on the home
equity loan or the bank may not give me the loan
at all.
Morgan Stanley's Common
Equity Tier 1
Ratio currently stands
at 15.8 % well above current requirements.
If When there's a market correction, we'll likely rebalance a bit back into
equities, but as a conservative investor I'm comfortable with our overall Asset Allocation
at this stage, especially given the current CAPE
Ratio of 29.5 (then again, I suffer from The One More Year Syndrome).
Equity: Many banks will make investment property loans
at an 80 % loan - to - value
ratio, but that number applies to the before - repair value.
Consider especially slide 32, where the weak dollar combined with strong overseas
equity markets flattens out the net foreign assets to GDP
ratio at near -20 %.
The majority of lenders offer mortgage and home
equity applicants the lowest possible interest rate when the loan - to - value
ratio is
at or below 80 %.
Our belief is that US
equity markets remain overvalued, even if forward P / E
ratios look attractive
at the moment, because the tax cut will only provide a one - time boost to earnings.
Kentucky F.H.A. borrowers, meanwhile, can stop paying the monthly mortgage insurance only after five years and when their loan - to - value
ratio reaches 78 percent,
at which point they have 22 percent
equity in their home.
At the end of 2012, it showed current LTV
ratios of 62 % and 72 % for the first mortgage and home
equity line of credit portfolios, respectively.
Homeowners looking to refinance, cash out or purchase an investment property can take advantage of PenFed's home
equity options: these are offered in 60 -, 120 -, 180 - and 240 - month terms,
at various rates depending on your loan - to - value (LTV)
ratio.
There is one additional criteria in my checklist that I consider prior to deeper balance sheet analysis and that looking
at the company's debt to
equity ratio.
Apple's D / E (debt to
equity ratio) now stands
at 0.3.
HELOCs are available to homeowners with
at least 20 per cent
equity and good qualifications (provable steady income, a reasonable debt
ratio, a solid credit score, a marketable property, and so on).
Investment Strategy Risk: Securities that have high book to market
ratios and / or high profitability may perform differently from the market as a whole and an investment strategy emphasizing these securities may cause the Portfolio to
at times underperform
equity funds that use other investment strategies.
The strategy is simple:
At the end of each December, sort country
equity markets by their price / book
ratios.
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.
With more than 100 commission - free ETFs expertly chosen by independent research firm, Morningstar, which includes
equity funds, commodity funds, international funds, and bond funds, all with economical expense
ratios, the options are plentiful to create a diverse portfolio trading
at a reasonable cost.
To help you with your investing and financial terminology, let's take a look
at what this
ratio is, what it means, how to calculate it and the importance of understanding a long term debt to
equity ratio.