Sentences with phrase «operating earnings ratio»

Higgins adds that valuations were much more frothy: «Back [in the 90s], the price / 12m trailing operating earnings ratio of the S&P 500 climbed to around 30 at its peak, which was roughly double its level in 1994.

These arguments include the Fed Model, the advocacy of price / operating earnings ratios, supposed links between earnings growth and market returns, arguments that the end of a Fed tightening cycle is quickly favorable for stocks, etc..

Not exact matches

However, at nearly 63 times current earnings - a whopping p / e ratio, to be sure - even if the firm were to grow its profit to the level of Berkshire - $ 8.5 billion - it would still lack the liquid assets and marketable securities the house that Warren Buffett built has, and it would not have a diversified income stream, making it far more vulnerable to changes in the competitive landscape; a major concern when you contemplate that Google operates in an industry where dramatic shifts consumer behavior can happen overnight.

Historically, we find that the least reliable market valuation measures are the Fed Model, the raw price / earnings ratio, and the forward operating P / E.

Since that time, the market's P / E on «forward operating earnings» has generally been substantially lower than the price / peak earnings ratio based on the highest level of trailing net earnings to - date.

Operating Earnings Yield (ttm): 7.2 (11/15 points) Net Income (ttm): $ 293 M Gross Profit (ttm): $ 868 M Total Assets: $ 3518 M Gross Profitability Ratio = Gross Profit / Total Assets: 25 % (8/18 points) Cash Return On Invested Capital (CROIC)(ttm): 12 % Return on Invested Capital (ROIC): 13 %

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...

Furthermore, the cyclically - adjusted P / E ratio suggests the S&P 500 is currently 30 % overvalued in terms of (9) Operating EPS and (10) about 45 % overvalued using As Reported earnings.

... The Russell 2000's price - earnings ratio increased 52 percent this year to 27.5 times estimated operating earnings, compared with 14.7 for the Dow, according to data compiled by Bloomberg.

Then, the author admits that forward - looking, i.e. next twelve month (NTM), earnings estimates predict operating income that is higher than the net income, which suppresses the P / E ratio.

Here, ROC is the ratio of the pre-tax operating earnings (EBIT) to tangible capital employed (Net working capital + Net fixed capital).

Since traditional measures of valuation are broadly overvalued, analysts who are recommending additional equity exposure tend to use P / E ratios based on future estimates for operating earnings.

Hengfu seeks to find stocks with strong earnings and sales growth, favorable p / e / g ratios, high operating margins, low debt - to - equity, consistent free cash and relative price strength.

These companies have increased their dividend for at least 15 years and have a lower than average price to earnings (PE) ratio, a higher operating margin, a low price to book, a reasonable dividend yield and payout ratio.

His variables capture profitability (positive earnings, positive cash flows from operations, increasing return on assets and negative accruals), operating efficiency (increasing gross margins and asset turnover) and liquidity (decreasing debt, increasing current ratio, and no equity issuance).

Operating Earnings Yield (ttm): 5.2 % (5/15 points) Net Income (ttm): $ -4169 M Gross Profit (ttm): $ 12348 M Total Assets: $ 64351 M Gross Profitability Ratio = GP / Total Assets: 19 % (6/18 points) Cash Return On Invested Capital (CROIC)(tttm): 9 % Return on Invested Capital (ROIC): -9 %

Operating Earnings Yield (ttm): 5.0 % (5/15 points) Net Income (ttm): $ 5309 M Gross Profit (ttm): $ 21176 M Total Assets: $ 70786 M Gross Profitability Ratio = Gross Profit / Total Assets: 30 % (8/18 points) Cash Return On Invested Capital (CROIC)(tttm): 22 % Return on Invested Capital (ROIC): 12 %

Seeks to capture large cap stock mispricing opportunities due to market inefficiency, by continuously computing relative valuation of large cap stocks according to growth factors such as earnings growth rate, sales growth rate, p / e / g ratios, asset turnover rate, operating margin, debt / equity ratio, free cash flow, relative price strength, etc..

A more robust and lasting measure of value uses all three valuation estimates: price - to - book ratio, forward - looking price - to - earnings ratio, and enterprise value - to - cash flow from operating activities.

We defined the earnings yield ratio (EY) as operating income / enterprise value.

Stocks were selected and held only if they appeared undervalued based on ratios like price to earnings, price to «owner earnings» (similar to free cash flow), enterprise value to operating earnings, and price to tangible book.

Sure, there's lots of companies & sectors which clearly deserve a variety of different valuation approaches, ratios & metrics — but on the other hand, the same operating margin and / or earnings growth rate (for example) surely doesn't deserve a ridiculously higher multiple in one sector vs. another.

It is then straightforward to calculate objects such as the Fed Model (the ratio of the forward operating earnings yield to 10 - year Treasury yields), and to demonstrate that it has zero correlation with subsequent market returns.

With an annual expense ratio of just 0.34 %, ** you'll lose less of your fund's earnings to operating expenses and keep more in your account, working for you.

Do focus on sales (growth), gross / operating margins, debt & cashflows — not earnings ratios — as any corporate acquirer would.

It does not make sense to do as you have done and eliminate the worst year, then use operating earnings, and then compare it to the historical, unadjusted, «as reported» ratio.

Net Interest / Operating Profit: Only calculated on a limited number of earnings based companies, where their net interest / operating profit ratio exceOperating Profit: Only calculated on a limited number of earnings based companies, where their net interest / operating profit ratio exceoperating profit ratio exceeds 10 %.

Operating Earnings Yield (ttm): 5.9 % (7/15 points) Net Income (ttm): $ 1601 M Gross Profit (ttm): $ 6660 M Total Assets: $ 19858 M Gross Profitability Ratio = GP / Total Assets: 34 % (11/18 points) Cash Return On Invested Capital (CROIC)(tttm): 13 % Return on Invested Capital (ROIC): 12 %