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PEG Ratio
The 'PEG ratio' ( price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share ( EPS), and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus, using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different growth rates. The PEG ratio is considered to be a convenient approximation. It was originally developed by Mario Farina who wrote about it in his 1969 Book, ''A Beginner's Guide To Successful Investing In The Stock Market''. It was later popularized by Peter Lynch, who wrote in his 1989 book ''One Up on Wall Street'' that "The P/E ratio of any company that's fairly priced will equal its growth rate", i.e., a fairly valued company will have its PEG equal ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Earnings Growth
Earnings growth is the annual compound annual growth rate (CAGR) of earnings from investments. For more general discussion see: Sustainable growth rate#From a financial perspective; Stock valuation#Growth rate; Valuation using discounted cash flows#Determine the continuing value; Growth stock; PEG ratio. Overview When the dividend payout ratio is the same, the dividend growth rate is equal to the earnings growth rate. Earnings growth rate is a key value that is needed when the Discounted cash flow model, or the Gordon's model is used for stock valuation. The present value is given by: :P = D\cdot\sum_^\left(\frac\right)^ . where P = the present value, k = discount rate, D = current dividend and g_i is the revenue growth rate for period i. If the growth rate is constant for i=n+1 to \infty, then, :P = D\cdot\frac + D\cdot(\frac)^2 +...+ D\cdot(\frac)^n+ D\cdot\sum_^\left(\frac\right)^ The last term corresponds to the terminal case. When the growth rate is always the sa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Earnings Per Share
Earnings per share (EPS) is the monetary value of earnings per outstanding share of common stock for a company. It is a key measure of corporate profitability and is commonly used to price stocks. In the United States, the Financial Accounting Standards Board (FASB) requires EPS information for the four major categories of the income statement: continuing operations, discontinued operations, extraordinary items, and net income. Calculating Preferred stock rights have precedence over common stock. Therefore, dividends on preferred shares are subtracted before calculating the EPS. When preferred shares are cumulative, annual dividends are deducted whether or not they have been declared. Dividends in arrears are not relevant when calculating EPS. ;Basic formula :Earnings per share = ;Net income formula :Earnings per share = ;Continuing operations formula :Earnings per share = Diluted earnings per share ''Diluted earnings per share'' (diluted EPS) is a company's earnings per ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Peter Lynch
Peter Lynch (born January 19, 1944) is an American investor, mutual fund manager, and philanthropist. As the manager of the Magellan Fund at Fidelity Investments between 1977 and 1990, Lynch averaged a 29.2% annual return, consistently more than double the S&P 500 stock market index and making it the best-performing mutual fund in the world.The Intelligent Investor, 2003, Commentary on the Introduction During his 13-year tenure, assets under management increased from US$18 million to $14 billion. A proponent of value investing, Lynch wrote and co-authored a number of books and papers on investing strategies, including ''One Up on Wall Street'', published by Simon & Schuster in 1989, which sold over one million copies. He coined a number of well-known mantras of modern individual investing, such as ''invest in what you know'' and ''ten bagger''. Lynch has been described as a "legend" by the financial media for his performance record. Early life and education Peter Lynch was born ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sum Of Perpetuities Method
The sum of perpetuities method (SPM) is a way of valuing a business assuming that investors discount the future earnings of a firm regardless of whether earnings are paid as dividends or retained. SPM is an alternative to the Gordon growth model (GGM) and can be applied to business or stock valuation if the business is assumed to have constant earnings and/or dividend growth. The variables are: *P is the value of the stock or business *E is a company's earnings *G is the company's constant growth rate *K is the company's risk adjusted discount rate *D is the company's dividend payment ::P = (\frac) + (\frac) Comparison with other models SPM and the Walter model SPM is a generalized version of the Walter model. The primary difference between SPM and the Walter model is the substitution of earnings and growth in the equation. Consequently, any variable which may influence a company's constant growth rate such as inflation, external financing, and changing industry dynamics c ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Yahoo! Finance
Yahoo! Finance is a media property that is part of the Yahoo! network. It provides financial news, data and commentary including stock quotes, press releases, financial reports, and original content. It also offers some online tools for personal finance management. In addition to posting partner content from other web sites, it posts original stories by its team of staff journalists. It is ranked 20th by SimilarWeb on the list of largest news and media websites. In 2017 Yahoo! Finance added the feature to look at news surrounding cryptocurrency. It lists over 9,000 unique coins including Bitcoin and Ethereum. See also * Google Finance * MSN Money References * https://finance.yahoo.com/portfolios External links Yahoo! Finance Economics websites Finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and serv ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States. Most economists agree that high levels of inflation as well as hyperinflation—which have severely disruptive effects on the real economy—are caused by persistent excessive growth in the money supply. Views on low to moderate rates of inflation are more varied. Low or moderate inflation may be attri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Zacks
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Zacks is a surname. Notable people with the surname include: *Gordon Zacks (1933–2014), American businessman and writer *Jeff Zacks, American psychologist See also *Zack (other) *Zaks (other) Zaks are a construction toy. Zaks may also refer to: * Zaks (surname) * Zak's, a bus company in England See also *Zacks *Sachs *Sachse (other) *Sacks (surname) * Saks (other) *Sax (other) *Saxe (other) *Small ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Return On Equity
The return on equity (ROE) is a measure of the profitability of a business in relation to the equity. Because shareholder's equity can be calculated by taking all assets and subtracting all liabilities, ROE can also be thought of as a return on ''assets minus liabilities''. ROE measures how many dollars of profit are generated for each dollar of shareholder's equity. ROE is a metric of how well the company utilizes its equity to generate profits. The formula : ROE is equal to a fiscal year net income (after preferred stock dividends, before common stock dividends), divided by total equity (excluding preferred shares), expressed as a percentage. Usage ROE is especially used for comparing the performance of companies in the same industry. As with return on capital, a ROE is a measure of management's ability to generate income from the equity available to it. ROEs of 15–20% are generally considered good. ROE is also a factor in stock valuation, in association with other fina ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Analyst
A financial analyst is a professional, undertaking financial analysis for external or internal clients as a core feature of the job. The role may specifically be titled securities analyst, research analyst, equity analyst, investment analyst, or ratings analyst.Financial Analysts Bureau of Labor StatisticsFinancial Analysts collegegrad.com The job title is a broad one: [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dividend
A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called retained earnings). The current year profit as well as the retained earnings of previous years are available for distribution; a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash (usually a deposit into a bank account) or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or by share repurchase. In some cases, the distribution may be of assets. The dividend received by a shareholder is income of the shareholder and may be subject to income tax (see dividend tax). The tax treatment of this income varies considerably between jurisdictions. The corporation does not receive a tax deduct ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
