Counter-intuitively, the transition out of active funds and into passive funds makes the market more efficient in
its relative pricing of shares, because it preferentially removes lower - skilled players from the active segment of the market, leaving a higher average level of skill in the remaining pool of market participants to set prices.
Not exact matches
FORTUNE — The ratio
of share price to annual earnings — usually expressed as P / E or simply PE — is the simplest and most widely used metric to gauge the
relative value
of a pair
of companies.
HONG KONG — After several weeks
of relative calm, tumult returned to China's stock markets on Monday, casting doubt on the government's measures to support
share prices.
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 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 share
price by the company's earnings per
share (EPS)
When it comes to equities, most investors realize a stock's
price per
share isn't a particularly good barometer
of how expensive or inexpensive it is
relative to its intrinsic value.
Given the absence
of a public trading market
of our common stock, and in accordance with the American Institute
of Certified Public Accountants Accounting and Valuation Guide, Valuation
of Privately - Held Company Equity Securities Issued as Compensation, our board
of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate
of fair value
of our common stock, including independent third - party valuations
of our common stock; the
prices at which we sold
shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges
of our convertible preferred stock
relative to those
of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack
of marketability
of our common stock; the hiring
of key personnel and the experience
of our management; the introduction
of new products; our stage
of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood
of achieving a liquidity event, such as an initial public offering or a sale
of our company given the prevailing market conditions and the nature and history
of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.
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.
I have no opinion on whether there is a bubble in gold
shares at the moment; having one would require a knowledge
of these stocks» fundamental valuations
relative to their market
prices.
This weakness in world
prices reflects low
prices for a range
of manufactured goods, combined with a trend
of falling
relative prices of information and communications technology goods, which account for a growing
share of imports.
At Valuentum, we often use a discounted cash - flow model as a means to back into the current
share price of firms in order to ascertain whether the market is unfairly
pricing their stock
relative to reasonable long - term growth and profitability assumptions.
The
Shares may trade at a
price which is at, above or below the NAV per
Share and any discount or premium in the trading
price relative to the NAV per
Share may widen as a result
of non-concurrent trading hours.
A gauge
of industrial
shares that includes Sydney Airport and tollroad operator Transurban Group is trading near to the most expensive in at least 10 years compared with bank stocks, after hitting in May the highest
relative price - to - book ratio since data began in 2005.
A valuation metric for determining the
relative trade - off between the
price of a stock, earnings generated per
share (EPS), dividend yield and the company's expected growth.
Because
of its high
price relative to its book value and earnings, Berkshire
shares could be «dead money for at least a year,» the investor weekly said.
Still, the value effect received its most famous academic endorsement in a 1992 paper by finance professors Eugene F. Fama and Kenneth R. French, who defined value stocks as those
shares that trade at a low
price relative to their book value («The Cross-Section
of Expected Stock Returns,» Journal
of Finance, Vol.
If the
price of a company goes up, so goes it's capitalization, and that's why the
relative weight increases, not because more
share are purchased.
As with all CEF investments, there is an additional potential for profit besides the increase in value
of the underlying assets per
share (also called Net Asset Value or NAV), which is the improvement
of their market
price relative to their NAV.
When you look at a basic quote on a ticker symbol there is usually a line for Div / yeild which gives the amount
of dividend paid per
share, and the
relative yeild (as a percentage
of the stock
price).
However, the 30 - day trend in its
share price performance
of 2.56 % is below the peer median suggesting that the company's recent performance has faded significantly
relative to peers.
The 30 - day trend in its
share price performance
of 7.95 % is also above the peer median
of 6.07 % suggesting that this company is a leading performer
relative to its peers.
However, the 30 - day trend in its
share price performance
of 5.94 % is now around the peer median suggesting that the company's recent performance has faded
relative to peers.
Pairs trade Pairs traders aim to profit from the change in the
price of, say, one
share relative to another.
The Ladies also look at timeliness (a prediction
of how fast a stock's
price will grow compared to other stocks - stocks are given a number
of 1 to 5, with one being the highest and the best); safety (the volatility
of a stock's
price around its own long term trend); beta (the volatility
of a stock's
price relative to the total market) and upside - down ratios (the ratio between the projected potential gain per
share divided by the risk
of loss per
share).
Already, the severe liquidation
of precious metals
shares is beginning to alter the menu
of prospective returns, though it is important to recognize that even the historically low valuation
of gold
shares relative to spot gold
prices does not remove risk or ensure returns, particularly over the near - term.
The stock
of a company that is classified as a «value stock» typically has a lower
price - to - earnings ratio, which simply means that the stock currently has a lower
price per
share relative to the company's earnings per
share.
I have no opinion on whether there is a bubble in gold
shares at the moment; having one would require a knowledge
of these stocks» fundamental valuations
relative to their market
prices.
By monitoring
price movements
of all preferred
shares on an ongoing basis, the Lysander - Slater funds aim to purchase oversold securities that are
of good credit, good structure, and offer cheap
relative value.
I prefer to focus instead on looking at all my positions afresh every day / week, and asking what % holding (if any) should I now own based on the company's business / financial risk, its
share price action, its potential fair value upside, the changing micro and macro risk environment, and the
relative value
of other holdings / buy list stocks.
On Wednesday,
shares of the old ETF will be exchanged for
shares of the new ETF according to a «switch ratio» that reflects their
relative price difference.
A combination
of mild weather (leading to a drop in total generation) and the increasing
price competitiveness
of natural gas
relative to coal contributed to the drop in coal's
share of total generation.
Lail cautions REITs investors to conduct an appropriate level
of due diligence before they invest in secondary offerings — not only considering how
shares are
priced relative to NAV, but also delving into a REIT's plan for the proceeds.
Leading multifamily company Greystar recently
shared the results
of its same store, same market comparison
of units using revenue management
relative to units using traditional
pricing practices.
IPO activity in 2017 could vary widely depending on the individual sector or property type and what happens with the
share prices of that sector
relative to its NAV.
On the last earnings call he told investors, «We continue to believe there is an absolute disconnect between our current
price of our
shares relative to the value and performance
of our portfolio.