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Price–earnings Ratio
The price–earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a company's share (stock) price to the company's earnings per share. The ratio is used for valuing companies and to find out whether they are overvalued or undervalued. :\text=\frac As an example, if share A is trading at and the earnings per share for the most recent 12-month period is , then share A has a P/E ratio of = years. Put another way, the purchaser of the share is expecting 8 years to recoup the share price. Companies with losses (negative earnings) or no profit have an undefined P/E ratio (usually shown as "not applicable" or " N/A"); sometimes, however, a negative P/E ratio may be shown. There is a general consensus among most investors that a P/E ratio of around 10 to 20 is 'fairly valued' but this is sector-dependent. Versions There are multiple versions of the P/E ratio, depending on whether earnings are projected or realized, and the type of earnings. * "Trailing P/E" uses ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
S And P 500 Pe Ratio To Mid2012
S, or s, is the nineteenth Letter (alphabet), letter of the Latin alphabet, used in the English alphabet, the alphabets of other western Languages of Europe, European languages and other latin alphabets worldwide. Its name in English is English alphabet#Letter names, ''ess'' (pronounced ), plural ''esses''. History Northwest Semitic abjad, Northwest Semitic Shin (letter), šîn represented a voiceless postalveolar fricative (as in 'ip'). It originated most likely as a pictogram of a tooth () and represented the phoneme via the acrophonic principle. Ancient Greek did not have a "sh" phoneme, so the derived Greek letter Sigma (letter), Sigma () came to represent the voiceless alveolar sibilant . While the letter shape Σ continues Phoenician ''šîn'', its name ''sigma'' is taken from the letter ''Samekh'', while the shape and position of ''samekh'' but name of ''šîn'' is continued in the ''Ξ, xi''. Within Greek, the name of ''sigma'' was influenced by its associatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Early 2000s Recession
The early 2000s recession was a major decline in economic activity which mainly occurred in developed countries. The recession affected the European Union during 2000 and 2001 and the United States from March to November 2001. The United Kingdom, Canada and Australia avoided the recession, while Russia, a nation that did not experience prosperity during the 1990s, began to recover from it. Japan's Lost Decade (Japan), 1990s recession continued. A combination of the Dot Com Bubble collapse and the September 11 attacks, September 11 attacks lengthed and worsened the recession. This recession was predicted by economists because the boom of the 1990s, accompanied by both low inflation and low unemployment, slowed in some parts of East Asia during the 1997 Asian financial crisis. The recession in industrialized countries was not as significant as either of the two previous worldwide recessions. Some economists in the United States object to characterizing it as a recession since t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dividend Yield
The dividend yield or dividend–price ratio of a share is the dividend per share divided by the price per share. It is also a company's total annual dividend payments divided by its market capitalization, assuming the number of shares is constant. It is often expressed as a percentage. Dividend yield is used to calculate the dividend earning on investments. Analysis Historically, a higher dividend yield has been considered to be desirable among many investors. A high dividend yield can be considered to be evidence that a stock is underpriced or that the company has fallen on hard times and future dividends will not be as high as previous ones. Similarly a low dividend yield can be considered evidence that the stock is overpriced or that future dividends might be higher. Some investors may find a higher dividend yield attractive, for instance as an aid to marketing a fund to retail investors, or maybe because they cannot get their hands on the capital, which may be tied up in a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Present Value Of Growth Opportunities
In corporate finance, Alex Stomper (N.D.Finance Theory I MIT OpenCourseWare the present value of growth opportunities (PVGO) is a valuation measure applied to growth stocks. It represents the component of the company's stock value that corresponds to (expected) growth in earnings. It thus allows an analyst to assess the extent to which the share price represents the current business, and to what extent it reflects assumptions about the future. PVGO can then also be used in relative valuation, i.e. when comparing between two investments (see similar re PEG ratio). PVGO is calculated as follows: : This formula arises by thinking of the value of a company as inhering two components: (i) the present value of existing earnings, i.e. the company continuing as if under a "no-growth policy"; and (ii) the present value of the company's growth opportunities. PVGO can then simply be calculated as the difference between the stock price and the present value of its zero-growth-earnings; ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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 equ ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cyclically Adjusted Price-to-earnings Ratio
The cyclically adjusted price–earnings ratio, price-to-earnings ratio, commonly known as CAPE, Shiller P/E, or P/E 10 ratio, is a stock valuation measure usually applied to the US S&P 500 equity market. It is defined as price divided by the average of ten years of earnings (moving average), adjusted for inflation. As such, it is principally used to assess likely future returns from equities over timescales of 10 to 20 years, with higher than average CAPE values implying lower than average long-term annual average returns. The ratio was invented by American economist Robert J. Shiller. The ratio is used to gauge whether a stock, or group of stocks, is undervalued or overvalued by comparing its current market price to its inflation-adjusted historical earnings record. It is a variant of the more popular price to earning ratio and is calculated by dividing the current price of a stock by its average inflation-adjusted earnings over the last 10 years. Using average earnings over t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Private Equity
Private equity (PE) is stock in a private company that does not offer stock to the general public; instead it is offered to specialized investment funds and limited partnerships that take an active role in the management and structuring of the companies. In casual usage "private equity" can refer to these investment firms rather than the companies in which they invest. Private-equity capital (economics), capital is invested into a target company either by an investment management company (private equity firm), a venture capital fund, or an angel investor; each category of investor has specific financial goals, management preferences, and investment strategies for profiting from their investments. Private equity can provide working capital to finance a target company's expansion, including the development of new products and services, operational restructuring, management changes, and shifts in ownership and control. As a financial product, a private-equity fund is private capital ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Slush Fund
A slush fund is a fund or account used for miscellaneous income and expenses, particularly when these are corrupt or illegal. Such funds may be kept hidden and maintained separately from money that is used for legitimate purposes. Slush funds may be employed by government or corporate officials in efforts to pay influential people discreetly in return for preferential treatment, advance information (such as non-public information in financial transactions), and other services. The funds themselves may not be kept secret but the source of the funds or how they were acquired or for what purposes they are used may be hidden. Use of slush funds to influence government activities may be viewed as subversive of the democratic process. A slush fund can also be a reserve account used to reduce fluctuations in an organization's earnings by withholding them when they are high and supplementing them when they are low. This type of slush fund is not inherently corrupt, but is nonetheless ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Conglomerate (company)
A conglomerate () is a type of multi-industry company that consists of several different and unrelated List of legal entity types by country, business entities that operate in various industries. A conglomerate usually has a Holding company, parent company that owns and controls many Subsidiary, subsidiaries, which are legally independent but financially and strategically dependent on the parent company. Conglomerates are often large and Multinational corporation, multinational corporations that have a global presence and a diversified portfolio of products and services. Conglomerates can be formed by merger and acquisitions, Corporate spin-off, spin-offs, or joint ventures. Conglomerates are common in many countries and sectors, such as Media (communication), media, Finance, banking, Energy industry, energy, mining, manufacturing, retail, Arms industry, defense, and transportation. This type of organization aims to achieve economies of scale, market power, Risk management, ris ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Accretion/dilution Analysis
Accretion/dilution analysis is a type of M&A financial modelling performed in the pre-deal phase to evaluate the effect of the transaction on shareholder value and to check whether EPS for buying shareholders will increase or decrease post-deal.Accretion / Dilution Analysis: A Merger Mystery/ref> Generally, shareholders A shareholder (in the United States often referred to as stockholder) of corporate stock refers to an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the ... do not prefer dilutive transactions; however, if the deal may generate enough value to become accretive in a reasonable time, a proposed combination is justified. Aside is a simplified example. A real-life accretion/dilution analysis may be much more complex if the deal is structured as cash-and-stock-for-stock, if preferred shares and dilutive instruments are involved, if debt and transaction fees are substanti ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
2020 Stock Market Crash
On 20 February 2020, stock markets across the world suddenly crashed after growing instability due to the COVID-19 pandemic. The crash ended on 7 April 2020. Beginning on 13 May 2019, the yield curve on U.S. Treasury securities inverted, and remained so until 11 October 2019, when it reverted to normal. Through 2019, while some economists (including Campbell Harvey and former New York Federal Reserve economist Arturo Estrella), argued that a recession in the following year was likely, other economists (including the managing director of Wells Fargo Securities Michael Schumacher and San Francisco Federal Reserve President Mary C. Daly) argued that inverted yield curves may no longer be a reliable recession predictor. The yield curve on U.S. Treasuries would not invert again until 30 January 2020 when the World Health Organization declared the COVID-19 outbreak to be a Public Health Emergency of International Concern, four weeks after local health commission officials ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Black Monday (1987)
Black Monday (also known as Black Tuesday in some parts of the world due to time zone differences) was a global, severe and largely unexpected stock market crash on Monday, October 19, 1987. Worldwide losses were estimated at US$1.71 trillion. The severity sparked fears of extended economic instability or a reprise of the Great Depression. Possible explanations for the initial fall in stock prices include a fear that stocks were significantly overvalued and were certain to undergo a correction, persistent US trade and budget deficits, and rising interest rates. Another explanation for Black Monday comes from the decline of the dollar, followed by a lack of faith in governmental attempts to stop that decline. In February 1987, leading industrial countries had signed the Louvre Accord, hoping that monetary policy coordination would stabilize international money markets, but doubts about the viability of the accord created a crisis of confidence. The fall may have been acceler ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
