725:
can also use historical P/E and historical growth rate to see where it has traded in the past). This will yield a ratio that is usually expressed as a percentage. The conjecture goes that as the percentage rises over 100% the stock becomes more and more overvalued, and as the PEG ratio falls below 100% the stock becomes more and more undervalued. The conjecture is based on a belief that P/E ratios should approximate the long-term growth rate of a company's earnings. Whether or not this is true will never be proven and the conjecture is therefore just a rule of thumb to use in the overall valuation process.
362:
one time items as well as some non-cash items like amortization of goodwill or stock option expenses. The most important thing to look for in the EPS figure is the overall quality of earnings. Make sure the company is not trying to manipulate their EPS numbers to make it look like they are more profitable. Also, look at the growth in EPS over the past several quarters / years to understand how volatile their EPS is, and to see if they are an underachiever or an overachiever. In other words, have they consistently beaten expectations or are they constantly restating and lowering their forecasts?
526:
664:
380:
301:
36:
1032:
enterprise value is the best approximation of what a company is worth at any point in time because it takes into account the actual stock price instead of balance sheet prices. When analysts say that a company is a "billion dollar" company, they are often referring to its total enterprise value. Enterprise value fluctuates rapidly based on stock price changes.
243:– is to base the assessment on supply and demand: simply, the more people that want to buy the stock, the higher its price will be; and conversely, the more people that want to sell the stock, the lower the price will be. This form of valuation often drives the short-term stock market trends; and is associated with speculators as opposed to investors.
1041:
earnings, or that are going through unusually rough times. For example, if a company is facing restructuring and it is currently losing money, then the P/E ratio would be irrelevant. However, by applying an EV to Sales ratio, one could compute what that company could trade for when its restructuring is over and its earnings are back to normal.
985:
This valuation technique measures how much money the company makes each year per dollar of invested capital. Invested
Capital is the amount of money invested in the company by both stockholders and debtors. The ratio is expressed as a percent and one looks for a percent that approximates the level of
724:
This valuation technique has become popular over the past decade or so. It is better than simply looking at a P/E because it takes three factors into account; the price, earnings, and earnings growth rates. To compute the PEG ratio, the
Forward P/E is divided by the expected earnings growth rate (one
1087:
method is perhaps the most commonly used valuation method in the stock brokerage industry. By using comparison firms, a target price/earnings (or P/E) ratio is selected for the company, and then the future earnings of the company are estimated. The valuation's fair price is simply estimated earnings
278:
In July 2010, a
Delaware court ruled on appropriate inputs to use in discounted cash flow analysis in a dispute between shareholders and a company over the proper fair value of the stock. In this case the shareholders' model provided value of $ 139 per share and the company's model provided $ 89 per
176:
of a stock, based on predictions of the future cash flows and profitability of the business. Fundamental analysis may be replaced or augmented by market criteria – what the market will pay for the stock, disregarding intrinsic value. These can be combined as "predictions of future cash flows/profits
444:
Historical P/Es are computed by taking the current price divided by the sum of the EPS for the last four quarters, or for the previous year. Historical trends of the P/E should also be considered by viewing a chart of its historical P/E over the last several years (one can find this on most finance
1031:
is equal to the total value of the company, as it is trading for on the stock market. To compute it, add the market cap (see above) and the total net debt of the company. The total net debt is equal to total long and short term debt plus accounts payable, minus accounts receivable, minus cash. The
728:
Here is an example of how to use the PEG ratio to compare stocks. Stock A is trading at a forward P/E of 15 and expected to grow at 20%. Stock B is trading at a forward P/E of 30 and expected to grow at 25%. The PEG ratio for Stock A is 75% (15/20) and for Stock B is 120% (30/25). According to the
361:
EPS is the Net income available to common shareholders of the company divided by the number of shares outstanding. Usually, there will be two types of EPS listed: a GAAP (Generally
Accepted Accounting Principles) EPS and a Pro Forma EPS, which means that the income has been adjusted to exclude any
1052:
stands for earnings before interest, taxes, depreciation and amortization. It is one of the best measures of a company's cash flow and is used for valuing both public and private companies. To compute EBITDA, use a company's income statement, take the net income and then add back interest, taxes,
641:
The CSS theory suggests that company share prices are strongly influenced by bondholders. As a result of active repurchasing or issuing of shares by company managements, equilibrium pricing is no longer a result of balancing shareholder demand and supply. The asset pricing formula only applies to
516:
Regardless of research effort, a growth-rate based valuation, therefore, relies heavily on experience and judgement ("gut feel"), and analysts will thus (often) make inaccurate forecasts. It is for this reason, that analysts often display a range of forecast values, especially based on different
365:
The EPS number that most analysts use is the pro forma EPS. To compute this number, use the net income that excludes any one-time gains or losses and excludes any non-cash expenses like amortization of goodwill. Never exclude non-cash compensation expense as that does impact earnings per share.
989:
To compute the ratio, take the pro forma net income (same one used in the EPS figure mentioned above) and divide it by the invested capital. Invested capital can be estimated by adding together the stockholders equity, the total long and short term debt and accounts payable, and then subtracting
1040:
This ratio measures the total company value as compared to its annual sales. A high ratio means that the company's value is much more than its sales. To compute it, divide the EV by the net sales for the last four quarters. This ratio is especially useful when valuing companies that do not have
1061:
This is perhaps one of the best measurements of whether or not a company is cheap or expensive. To compute, divide the EV by EBITDA (see above for calculations). The higher the number, the more expensive the company is. However, more expensive companies are often valued higher because they are
440:
Now that the analyst has several EPS figures (historical and forecasts), the analyst will be able to look at the most common valuation technique used, the price to earnings ratio, or P/E. To compute this figure, one divides the stock price by the annual EPS figure. For example, if the stock is
998:
Similar to ROIC, ROA, expressed as a percent, measures the company's ability to make money from its assets. To measure the ROA, take the pro forma net income divided by the total assets. However, because of very common irregularities in balance sheets (due to things like
Goodwill, write-offs,
492:
Here, the analyst will typically look at the historical growth rate of both sales and income to derive a base for the type of future growth expected. However, since, companies are constantly evolving, as is the economy, solely using historical growth rates to predict the future will not be
263:(dividends, earnings, or cash flows) that the stock will bring to the stockholder in the foreseeable future, and sometimes a final value on disposal, depending on the valuation method. DCF method assumes that borrowing and lending rates are same. The discounted rate normally includes a
1053:
depreciation, amortization and any other non-cash or one-time charges. This results in a number that approximates how much cash the company is producing. EBITDA is a very popular figure because it can easily be compared across companies, even if not all of the companies are profit.
1015:
Market cap, which is short for market capitalization, is the value of all of the company's stock. To measure it, multiply the current stock price by the fully diluted shares outstanding. The market cap is only the value of the stock. To get a more complete picture, look at the
208:
There are many different ways to value stocks. The key is to take each approach into account while formulating an overall opinion of the stock. If the valuation of a company is lower or higher than other similar stocks, then the next step would be to determine the reasons.
448:
Forward P/Es reflect the growth of the company into the future. Forward P/Es are computed by taking the current stock price divided by the sum of the EPS estimates for the next four quarters, or for the EPS estimate for next calendar or fiscal year or two.
741:(SPM) equation. A generalized version of the Walter model (1956), SPM considers the effects of dividends, earnings growth, as well as the risk profile of a firm on a stock's value. Derived from the compound interest formula using the present value of a
366:
Then divide this number by the number of fully diluted shares outstanding. Historical EPS figures and forecasts for the next 1–2 years can be found by visiting free financial sites such as Yahoo
Finance (enter the ticker and then click on "estimates").
1235:
999:
discontinuations, etc.) this ratio is not always a good indicator of the company's potential. If the ratio is higher or lower than expected, one should look closely at the assets to see what could be over or understating the figure.
947:
513:. However, although companies are in the best position to forecast their own growth, they are often far from accurate; further, unforeseen macro-events could cause impact the economy and /or the company's industry.
504:
Calculating the future growth rate, therefore, requires personal investment research – familiarity with a company is essential before making a forecast. This may take form in listening to the company's quarterly
645:
The asset pricing formula can be used on a market aggregate level as well. The resulting graph shows at what times the S&P 500 Composite was overpriced and at what times it was under-priced relative to the
177:(fundamental)", together with "what will the market pay for these profits?" These can be seen as "supply and demand" sides – what underlies the supply (of stock), and what drives the (market) demand for stock?
616:
990:
accounts receivable and cash (all of these numbers can be found on the company's latest quarterly balance sheet). This ratio is much more useful when comparing it to other companies being valued.
986:
growth that expected. In its simplest definition, this ratio measures the investment return that management is able to get for its capital. The higher the number, the better the return.
729:
PEG ratio, Stock A is a better purchase because it has a lower PEG ratio, or in other words, its future earnings growth can be purchased for a lower relative price than that of Stock B.
650:
equilibrium. In times when the market is under-priced, corporate buyback programs will allow companies to drive up earnings-per-share, and generate extra demand in the stock market.
1114:
143:. The main use of these methods is to predict future market prices, or more generally, potential market prices, and thus to profit from price movement – stocks that are judged
445:
sites like Yahoo
Finance). Specifically, consider what range the P/E has traded in so as to determine whether the current P/E is high or low versus its historical average.
236:" is based on historic ratios and aims to assign value to a stock based on measurable attributes. This form of valuation is typically what drives long-term stock prices.
1007:
This figure is useful because it compares the current stock price to the annual sales. In other words, it describes how much the stock costs per dollar of sales earned.
1088:
times target P/E. This model is essentially the same model as Gordon's model, if k-g is estimated as the dividend payout ratio (D/E) divided by the target P/E ratio.
232:) method. It is widely applied in all areas of finance. Perhaps the most common fundamental methodology is the P/E ratio (Price to Earnings Ratio). This example of "
1359:
1318:
1281:
1393:
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growing faster or because they are a higher quality company. With that said, the best way to use EV/EBITDA is to compare it to that of other similar companies.
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864:
839:
817:
792:
770:
2040:
465:
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trading at $ 10 and the EPS is $ 0.50, the P/E is 20 times. A complete analysis of the P/E multiple includes a look at the historical and forward ratios.
1554:
875:
977:
Additional models represent the sum of perpetuities in terms of earnings, growth rate, the risk-adjusted discount rate, and accounting book value.
1108:. It assumes that dividends will increase at a constant growth rate (less than the discount rate) forever. The valuation is given by the formula:
501:). These, instead, are used as guidelines for what future growth "could look like" if similar circumstances are encountered by the company.
489:
based valuations rely (very) heavily on the expected growth rate of a company. An accurate assessment is therefore critical to the valuation
157:
are sold, in the expectation that undervalued stocks will overall rise in value, while overvalued stocks will generally decrease in value. A
1822:
452:
P/Es change constantly. If there is a large price change in a stock, or if the earnings (EPS) estimates change, the ratio is recomputed.
2033:
1797:
550:
525:
461:
100:
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1902:
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272:
72:
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of an owner's interest in a business, used to determine the price interested parties would be willing to pay or receive
1685:
Imam, Shahed; Barker, Richard; Clubb, Colin (September 2008). "The Use of
Valuation Models by UK Investment Analysts".
1661:
79:
1712:
Demirakos, Efthimios G.; Strong, Norman C.; Walker, Martin (December 2004). "What
Valuation Models Do Analysts Use?".
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1973:
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17:
68:
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2773:
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1230:{\displaystyle P=D\cdot \sum _{i=1}^{\infty }\left({\frac {1+g}{1+k}}\right)^{i}=D\cdot {\frac {1+g}{k-g}}}
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268:
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1955:
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Ardalan, Kavous (1999). "Discounted cash flow method: Its profile in introductory finance textbooks".
1967:
1783:
1625:
Yee, Kenton K. (September 2006). "Earnings
Quality and the Equity Risk Premium: A Benchmark Model*".
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173:
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311:
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2001:
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of public companies. The equilibrium condition of the CSS theory can be easily rearranged to an
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Allied Academies International Conference. Academy of Educational Leadership. Proceedings
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believes a stock to be fairly valued relative to its projected and historical earnings.
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is equal to 10%, and the company does not pay dividends, SPM reduces to the PEG ratio.
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849:
824:
802:
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240:
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of the business. Re. valuation in cases where both parties are corporations, see under
181:
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1979:
1949:
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538:
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1937:
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1017:
529:
S&P 500 Composite Index compared to the CSS asset pricing formula - August 2020
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942:{\displaystyle P=\left({\frac {E*G}{K^{2}}}\right)+\left({\frac {D}{K}}\right)}
284:
185:
1698:
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2617:
2602:
2577:
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2186:
2143:
2130:
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2007:
1996:
1932:
1442:
842:
634:
542:
506:
150:
140:
1557:. Harvard Law School Forum on Corporate Governance and Financial Regulation.
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Valuation using discounted cash flows § Determine the continuing value
220:- its output is used to justify stock prices. The most theoretically sound
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2191:
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1985:
1506:
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2504:
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Walter, James (March 1956). "Dividend Policies and Common Stock Prices".
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172:, stock valuation based on fundamentals aims to give an estimate of the
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2365:
2228:
1611:
742:
509:
or reading a press release or other company article that discusses the
1518:
William F. Sharpe, "Investments", Prentice-Hall, 1978, pp. 300 et.seq.
1412:
may be used in its place, assuming that the payout ratio is constant.
27:
Method of calculating theoretical values of companies and their stocks
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2018:
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300:
35:
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1755:
Ross, Stephen A.; Westerfield, Randolph; Jaffe, Jeffrey F. (1999).
1324:
795:
537:(CSS) describes the relationship between earnings, stock price and
1555:
Delaware Provides Guidance Regarding Discounted Cash Flow Analysis
2426:
611:{\displaystyle P_{\text{x}}={\frac {E_{\text{x}}}{R_{\text{x}}}}}
2169:
1868:
1049:
279:
share. Contested inputs included the terminal growth rate, the
630:
R is the nominal interest rate on corporate bonds of company x
2092:
1834:
462:
Sustainable growth rate § From a financial perspective
149:(with respect to their theoretical value) are bought, while
1243:
481:
1084:
1080:
653:
521:
Capital structure substitution - asset pricing formula
1711:
1569:"Sum of Perpetuities Method for Valuing Stock Prices"
1378:
1341:
1300:
1263:
1117:
960:
878:
852:
827:
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780:
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553:
1754:
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203:
1065:
60:. Unsourced material may be challenged and removed.
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1353:
1312:
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858:
833:
811:
786:
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610:
624:P is the current market price of public company x
2811:
1091:
1684:
1662:"What Is Considered a Healthy EV/EBITDA ?"
1070:
2034:
1791:
1241:and the following table defines each symbol:
732:
216:, is typically associated with investors and
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692:. Unsourced material may be challenged and
408:. Unsourced material may be challenged and
329:. Unsourced material may be challenged and
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2041:
2027:
1798:
1784:
369:
139:theoretical values of companies and their
993:
712:Learn how and when to remove this message
428:Learn how and when to remove this message
349:Learn how and when to remove this message
120:Learn how and when to remove this message
1567:Brown, Christian; Abraham, Fred (2012).
1023:
627:E is the earnings-per-share of company x
524:
271:. For discussion of the mechanics, see
1759:. Irwin/McGraw-Hill. pp. 115–130.
1527:
1408:Dividend growth rate is not known, but
1075:Assuming that two stocks have the same
1002:
745:equation, SPM is an alternative to the
737:The PEG ratio is a special case in the
246:
14:
2812:
1589:
224:, is called "income valuation" or the
2048:
2022:
1903:Present value of growth opportunities
1823:Cyclically adjusted price-to-earnings
1779:
1583:
819:is the company's constant growth rate
772:is the value of the stock or business
648:capital structure substitution theory
535:capital structure substitution theory
273:Valuation using discounted cash flows
1869:Enterprise value/gross cash invested
1805:
1748:
1659:
690:adding citations to reliable sources
657:
654:Price earnings to growth (PEG) ratio
406:adding citations to reliable sources
373:
327:adding citations to reliable sources
294:
58:adding citations to reliable sources
29:
1624:
24:
1604:10.1111/j.1540-6261.1956.tb00684.x
1560:
1146:
499:Discounted cash flow #Shortcomings
180:Stock valuation is different from
25:
2836:
981:Return on Invested Capital (ROIC)
866:is the company's dividend payment
204:Fundamental criteria (fair value)
184:, which is about calculating the
2297:Electronic communication network
1627:Contemporary Accounting Research
1398:the growth rate of the dividends
1104:is the best known of a class of
1066:Approximate valuation approaches
662:
378:
299:
34:
1974:Risk-adjusted return on capital
1705:
1056:
841:is the company's risk adjusted
267:which is commonly based on the
45:needs additional citations for
1678:
1653:
1618:
1548:
1521:
1512:
1496:
1035:
602:
590:
455:
13:
1:
2291:Multilateral trading facility
1490:
1092:Constant growth approximation
1010:
517:terminal value assumptions.
2714:Returns-based style analysis
2510:Post-modern portfolio theory
2416:Security characteristic line
1835:Cash return on cash invested
1071:Average growth approximation
7:
2468:Efficient-market hypothesis
2372:Capital asset pricing model
2309:Straight-through processing
1639:10.1506/8M44-W1DG-PLG4-8E0M
1573:Journal of Economic Insight
1438:Capital asset pricing model
1415:
269:capital asset pricing model
239:The alternative approach –
10:
2841:
2285:Alternative Trading System
1956:Return on capital employed
1726:10.2308/acch.2004.18.4.221
1687:European Accounting Review
1474:John Burr Williams: Theory
1465:theory of equity valuation
1106:discounted dividend models
739:sum of perpetuities method
733:Sum of perpetuities method
459:
261:discounting of the profits
2560:
2435:
2334:
2254:
2162:
2129:
2090:
2056:
1968:Return on tangible equity
1813:
1699:10.1080/09638180802016650
1428:Stock selection criterion
1044:
511:company's growth guidance
2349:Arbitrage pricing theory
1921:Price-earnings to growth
954:In a special case where
642:debt-holding companies.
291:Earnings per share (EPS)
194:Mergers and acquisitions
2628:Initial public offering
2489:Modern portfolio theory
2384:Dividend discount model
2267:List of stock exchanges
1863:Enterprise value/EBITDA
1479:Relative strength index
1083:is a better value. The
1079:, the one with a lower
370:Price to Earnings (P/E)
161:is a price at which an
2516:Random walk hypothesis
1875:Enterprise value/sales
1389:
1355:
1314:
1277:
1231:
1150:
994:Return on Assets (ROA)
968:
943:
860:
835:
813:
788:
766:
612:
530:
222:stock valuation method
2654:Market capitalization
2463:Dollar cost averaging
1458:Performance indicator
1390:
1356:
1354:{\displaystyle \ k\ }
1315:
1313:{\displaystyle \ D\ }
1286:estimated stock price
1278:
1276:{\displaystyle \ P\ }
1232:
1130:
1102:Gordon's growth model
1024:Enterprise Value (EV)
969:
944:
861:
836:
814:
789:
767:
749:. The variables are:
613:
528:
2820:Fundamental analysis
2474:Fundamental analysis
2458:Contrarian investing
2421:Security market line
2326:Liquidity aggregator
2303:Direct market access
2214:Quantitative analyst
1944:Return on net assets
1453:Fundamental analysis
1376:
1339:
1298:
1261:
1115:
1003:Price to Sales (P/S)
958:
876:
850:
825:
803:
778:
756:
686:improve this section
551:
495:problem of induction
487:Discounted cash flow
402:improve this section
323:improve this section
253:discounted cash flow
247:Discounted cash flow
226:discounted cash flow
214:Fundamental analysis
212:The first approach,
170:fundamental analysis
54:improve this article
2825:Valuation (finance)
2719:Reverse stock split
2664:Market manipulation
2588:Dual-listed company
2448:Algorithmic trading
2378:Capital market line
2180:Inter-dealer broker
1829:Capitalization rate
1714:Accounting Horizons
1388:{\displaystyle \ g}
747:Gordon Growth Model
281:equity risk premium
2759:Stock market index
2598:Efficient frontier
2537:Technical analysis
2495:Momentum investing
2317:(private exchange)
2207:Proprietary trader
2149:Shares outstanding
2139:Authorised capital
2002:Sustainable growth
1592:Journal of Finance
1385:
1351:
1310:
1273:
1227:
964:
939:
856:
831:
809:
784:
762:
608:
531:
493:appropriate (the "
259:) method involves
241:Technical analysis
234:relative valuation
218:financial analysts
182:business valuation
2807:
2806:
2608:Flight-to-quality
2360:Buffett indicator
2050:Financial markets
2016:
2015:
1950:Return on capital
1818:Buffett indicator
1766:978-0-256-24640-7
1757:Corporate Finance
1469:Undervalued stock
1406:
1405:
1381:
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1344:
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1303:
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1225:
1180:
967:{\displaystyle K}
933:
912:
859:{\displaystyle D}
834:{\displaystyle K}
812:{\displaystyle G}
787:{\displaystyle E}
765:{\displaystyle P}
722:
721:
714:
606:
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539:capital structure
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430:
359:
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198:Corporate finance
130:
129:
122:
104:
69:"Stock valuation"
16:(Redirected from
2832:
2724:Share repurchase
2436:Trading theories
2321:Crossing network
2279:Over-the-counter
2116:Restricted stock
2072:Secondary market
2043:
2036:
2029:
2020:
2019:
1962:Return on equity
1938:Return on assets
1892:Operating margin
1807:Financial ratios
1800:
1793:
1786:
1777:
1776:
1771:
1770:
1752:
1746:
1745:
1709:
1703:
1702:
1682:
1676:
1675:
1673:
1672:
1660:Maverick, J. B.
1657:
1651:
1650:
1622:
1616:
1615:
1587:
1581:
1580:
1564:
1558:
1552:
1546:
1545:
1525:
1519:
1516:
1510:
1500:
1484:Return on equity
1394:
1392:
1391:
1386:
1379:
1360:
1358:
1357:
1352:
1348:
1342:
1319:
1317:
1316:
1311:
1307:
1301:
1282:
1280:
1279:
1274:
1270:
1264:
1244:
1236:
1234:
1233:
1228:
1226:
1224:
1213:
1202:
1191:
1190:
1185:
1181:
1179:
1168:
1157:
1149:
1144:
1029:Enterprise value
1018:enterprise value
973:
971:
970:
965:
948:
946:
945:
940:
938:
934:
926:
917:
913:
911:
910:
901:
890:
865:
863:
862:
857:
840:
838:
837:
832:
818:
816:
815:
810:
793:
791:
790:
785:
771:
769:
768:
763:
717:
710:
706:
703:
697:
666:
658:
617:
615:
614:
609:
607:
605:
589:
588:
585:
578:
577:
574:
568:
563:
562:
559:
433:
426:
422:
419:
413:
382:
374:
354:
347:
343:
340:
334:
303:
295:
190:to effect a sale
153:that are judged
125:
118:
114:
111:
105:
103:
62:
38:
30:
21:
2840:
2839:
2835:
2834:
2833:
2831:
2830:
2829:
2810:
2809:
2808:
2803:
2794:Voting interest
2704:Public offering
2639:Mandatory offer
2613:Government bond
2593:DuPont analysis
2556:
2552:Value investing
2547:Value averaging
2542:Trend following
2527:Style investing
2522:Sector rotation
2437:
2431:
2410:Net asset value
2336:Stock valuation
2330:
2250:
2158:
2125:
2111:Preferred stock
2086:
2052:
2047:
2017:
2012:
1909:Price/cash flow
1852:Dividend payout
1809:
1804:
1774:
1767:
1753:
1749:
1710:
1706:
1683:
1679:
1670:
1668:
1658:
1654:
1623:
1619:
1588:
1584:
1565:
1561:
1553:
1549:
1526:
1522:
1517:
1513:
1501:
1497:
1493:
1488:
1418:
1410:earnings growth
1377:
1374:
1373:
1340:
1337:
1336:
1299:
1296:
1295:
1262:
1259:
1258:
1214:
1203:
1201:
1186:
1169:
1158:
1156:
1152:
1151:
1145:
1134:
1116:
1113:
1112:
1094:
1077:earnings growth
1073:
1068:
1059:
1047:
1038:
1026:
1013:
1005:
996:
983:
959:
956:
955:
925:
921:
906:
902:
891:
889:
885:
877:
874:
873:
851:
848:
847:
826:
823:
822:
804:
801:
800:
794:is a company's
779:
776:
775:
757:
754:
753:
735:
718:
707:
701:
698:
683:
667:
656:
584:
580:
579:
573:
569:
567:
558:
554:
552:
549:
548:
523:
507:conference call
484:
470:Earnings growth
458:
434:
423:
417:
414:
399:
383:
372:
355:
344:
338:
335:
320:
304:
293:
249:
206:
174:intrinsic value
168:In the view of
133:Stock valuation
126:
115:
109:
106:
63:
61:
51:
39:
28:
23:
22:
15:
12:
11:
5:
2838:
2828:
2827:
2822:
2805:
2804:
2802:
2801:
2796:
2791:
2786:
2781:
2776:
2771:
2766:
2761:
2756:
2754:Stock exchange
2751:
2749:Stock dilution
2746:
2741:
2736:
2731:
2726:
2721:
2716:
2711:
2706:
2701:
2696:
2691:
2686:
2681:
2676:
2674:Mean reversion
2671:
2666:
2661:
2656:
2651:
2649:Market anomaly
2646:
2641:
2636:
2631:
2625:
2620:
2615:
2610:
2605:
2600:
2595:
2590:
2585:
2580:
2575:
2570:
2568:Bid–ask spread
2564:
2562:
2558:
2557:
2555:
2554:
2549:
2544:
2539:
2534:
2529:
2524:
2519:
2513:
2507:
2502:
2497:
2492:
2486:
2481:
2476:
2471:
2465:
2460:
2455:
2450:
2444:
2442:
2433:
2432:
2430:
2429:
2424:
2418:
2413:
2407:
2402:
2397:
2395:Earnings yield
2392:
2390:Dividend yield
2387:
2381:
2375:
2369:
2363:
2357:
2352:
2346:
2340:
2338:
2332:
2331:
2329:
2328:
2323:
2318:
2312:
2306:
2300:
2294:
2288:
2282:
2281:(off-exchange)
2276:
2275:
2274:
2269:
2258:
2256:
2255:Trading venues
2252:
2251:
2249:
2248:
2243:
2242:
2241:
2231:
2226:
2221:
2216:
2211:
2210:
2209:
2204:
2194:
2189:
2184:
2183:
2182:
2177:
2166:
2164:
2160:
2159:
2157:
2156:
2154:Treasury stock
2151:
2146:
2141:
2135:
2133:
2127:
2126:
2124:
2123:
2121:Tracking stock
2118:
2113:
2108:
2103:
2097:
2095:
2088:
2087:
2085:
2084:
2079:
2074:
2069:
2067:Primary market
2063:
2061:
2054:
2053:
2046:
2045:
2038:
2031:
2023:
2014:
2013:
2011:
2010:
2005:
1999:
1994:
1991:Short interest
1988:
1983:
1977:
1971:
1965:
1959:
1953:
1947:
1941:
1935:
1930:
1924:
1918:
1915:Price-earnings
1912:
1906:
1900:
1894:
1889:
1884:
1878:
1872:
1866:
1860:
1857:Earnings yield
1854:
1849:
1847:Dividend cover
1844:
1841:Debt-to-equity
1838:
1832:
1826:
1820:
1814:
1811:
1810:
1803:
1802:
1795:
1788:
1780:
1773:
1772:
1765:
1747:
1720:(4): 221–240.
1704:
1693:(3): 503–535.
1677:
1652:
1633:(3): 833–877.
1617:
1582:
1559:
1547:
1520:
1511:
1494:
1492:
1489:
1487:
1486:
1481:
1476:
1471:
1466:
1460:
1455:
1450:
1445:
1440:
1435:
1433:Bond valuation
1430:
1425:
1419:
1417:
1414:
1404:
1403:
1400:
1395:
1384:
1370:
1369:
1366:
1361:
1347:
1333:
1332:
1329:
1320:
1306:
1292:
1291:
1288:
1283:
1269:
1255:
1254:
1251:
1248:
1239:
1238:
1223:
1220:
1217:
1212:
1209:
1206:
1200:
1197:
1194:
1189:
1184:
1178:
1175:
1172:
1167:
1164:
1161:
1155:
1148:
1143:
1140:
1137:
1133:
1129:
1126:
1123:
1120:
1093:
1090:
1072:
1069:
1067:
1064:
1058:
1055:
1046:
1043:
1037:
1034:
1025:
1022:
1012:
1009:
1004:
1001:
995:
992:
982:
979:
963:
952:
951:
950:
949:
937:
932:
929:
924:
920:
916:
909:
905:
900:
897:
894:
888:
884:
881:
868:
867:
855:
845:
830:
820:
808:
798:
783:
773:
761:
734:
731:
720:
719:
670:
668:
661:
655:
652:
639:
638:
631:
628:
625:
604:
601:
598:
595:
592:
583:
572:
566:
557:
522:
519:
457:
454:
436:
435:
386:
384:
377:
371:
368:
357:
356:
307:
305:
298:
292:
289:
248:
245:
205:
202:
186:economic value
137:of calculating
135:is the method
128:
127:
42:
40:
33:
26:
9:
6:
4:
3:
2:
2837:
2826:
2823:
2821:
2818:
2817:
2815:
2800:
2797:
2795:
2792:
2790:
2787:
2785:
2782:
2780:
2777:
2775:
2772:
2770:
2767:
2765:
2762:
2760:
2757:
2755:
2752:
2750:
2747:
2745:
2742:
2740:
2737:
2735:
2732:
2730:
2729:Short selling
2727:
2725:
2722:
2720:
2717:
2715:
2712:
2710:
2707:
2705:
2702:
2700:
2697:
2695:
2692:
2690:
2687:
2685:
2682:
2680:
2677:
2675:
2672:
2670:
2667:
2665:
2662:
2660:
2657:
2655:
2652:
2650:
2647:
2645:
2642:
2640:
2637:
2635:
2632:
2629:
2626:
2624:
2621:
2619:
2618:Greenspan put
2616:
2614:
2611:
2609:
2606:
2604:
2603:Financial law
2601:
2599:
2596:
2594:
2591:
2589:
2586:
2584:
2581:
2579:
2578:Cross listing
2576:
2574:
2571:
2569:
2566:
2565:
2563:
2561:Related terms
2559:
2553:
2550:
2548:
2545:
2543:
2540:
2538:
2535:
2533:
2532:Swing trading
2530:
2528:
2525:
2523:
2520:
2517:
2514:
2511:
2508:
2506:
2503:
2501:
2500:Mosaic theory
2498:
2496:
2493:
2490:
2487:
2485:
2484:Market timing
2482:
2480:
2477:
2475:
2472:
2469:
2466:
2464:
2461:
2459:
2456:
2454:
2451:
2449:
2446:
2445:
2443:
2441:
2434:
2428:
2425:
2422:
2419:
2417:
2414:
2411:
2408:
2406:
2403:
2401:
2398:
2396:
2393:
2391:
2388:
2385:
2382:
2379:
2376:
2373:
2370:
2367:
2364:
2361:
2358:
2356:
2353:
2350:
2347:
2345:
2342:
2341:
2339:
2337:
2333:
2327:
2324:
2322:
2319:
2316:
2313:
2310:
2307:
2304:
2301:
2298:
2295:
2292:
2289:
2286:
2283:
2280:
2277:
2273:
2272:Trading hours
2270:
2268:
2265:
2264:
2263:
2260:
2259:
2257:
2253:
2247:
2244:
2240:
2237:
2236:
2235:
2232:
2230:
2227:
2225:
2222:
2220:
2217:
2215:
2212:
2208:
2205:
2203:
2200:
2199:
2198:
2195:
2193:
2190:
2188:
2187:Broker-dealer
2185:
2181:
2178:
2176:
2173:
2172:
2171:
2168:
2167:
2165:
2161:
2155:
2152:
2150:
2147:
2145:
2144:Issued shares
2142:
2140:
2137:
2136:
2134:
2132:
2131:Share capital
2128:
2122:
2119:
2117:
2114:
2112:
2109:
2107:
2104:
2102:
2099:
2098:
2096:
2094:
2089:
2083:
2082:Fourth market
2080:
2078:
2075:
2073:
2070:
2068:
2065:
2064:
2062:
2060:
2055:
2051:
2044:
2039:
2037:
2032:
2030:
2025:
2024:
2021:
2009:
2006:
2003:
2000:
1998:
1995:
1992:
1989:
1987:
1984:
1981:
1978:
1975:
1972:
1969:
1966:
1963:
1960:
1957:
1954:
1951:
1948:
1945:
1942:
1939:
1936:
1934:
1933:Profit margin
1931:
1928:
1925:
1922:
1919:
1916:
1913:
1910:
1907:
1904:
1901:
1898:
1897:Price-to-book
1895:
1893:
1890:
1888:
1885:
1882:
1881:Loan-to-value
1879:
1876:
1873:
1870:
1867:
1864:
1861:
1858:
1855:
1853:
1850:
1848:
1845:
1842:
1839:
1836:
1833:
1830:
1827:
1824:
1821:
1819:
1816:
1815:
1812:
1808:
1801:
1796:
1794:
1789:
1787:
1782:
1781:
1778:
1768:
1762:
1758:
1751:
1743:
1739:
1735:
1731:
1727:
1723:
1719:
1715:
1708:
1700:
1696:
1692:
1688:
1681:
1667:
1663:
1656:
1648:
1644:
1640:
1636:
1632:
1628:
1621:
1613:
1609:
1605:
1601:
1597:
1593:
1586:
1578:
1574:
1570:
1563:
1556:
1551:
1543:
1539:
1535:
1531:
1524:
1515:
1508:
1504:
1499:
1495:
1485:
1482:
1480:
1477:
1475:
1472:
1470:
1467:
1464:
1461:
1459:
1456:
1454:
1451:
1449:
1448:Mosaic theory
1446:
1444:
1443:Value at risk
1441:
1439:
1436:
1434:
1431:
1429:
1426:
1424:
1421:
1420:
1413:
1411:
1401:
1399:
1396:
1382:
1372:
1371:
1367:
1365:
1364:discount rate
1362:
1345:
1335:
1334:
1331:$ or € or £
1330:
1328:
1326:
1321:
1304:
1294:
1293:
1290:$ or € or £
1289:
1287:
1284:
1267:
1257:
1256:
1252:
1249:
1246:
1245:
1242:
1221:
1218:
1215:
1210:
1207:
1204:
1198:
1195:
1192:
1187:
1182:
1176:
1173:
1170:
1165:
1162:
1159:
1153:
1141:
1138:
1135:
1131:
1127:
1124:
1121:
1118:
1111:
1110:
1109:
1107:
1103:
1099:
1089:
1086:
1082:
1078:
1063:
1054:
1051:
1042:
1033:
1030:
1021:
1019:
1008:
1000:
991:
987:
978:
975:
961:
935:
930:
927:
922:
918:
914:
907:
903:
898:
895:
892:
886:
882:
879:
872:
871:
870:
869:
853:
846:
844:
843:discount rate
828:
821:
806:
799:
797:
781:
774:
759:
752:
751:
750:
748:
744:
740:
730:
726:
716:
713:
705:
695:
691:
687:
681:
680:
676:
671:This section
669:
665:
660:
659:
651:
649:
643:
636:
635:corporate tax
632:
629:
626:
623:
622:
621:
618:
599:
596:
593:
581:
570:
564:
555:
546:
544:
543:asset pricing
540:
536:
527:
518:
514:
512:
508:
502:
500:
496:
490:
488:
483:
479:
475:
471:
467:
463:
453:
450:
446:
442:
432:
429:
421:
411:
407:
403:
397:
396:
392:
387:This section
385:
381:
376:
375:
367:
363:
353:
350:
342:
332:
328:
324:
318:
317:
313:
308:This section
306:
302:
297:
296:
288:
286:
282:
276:
274:
270:
266:
262:
258:
254:
244:
242:
237:
235:
231:
227:
223:
219:
215:
210:
201:
199:
195:
191:
187:
183:
178:
175:
171:
166:
164:
160:
156:
152:
148:
147:
142:
138:
134:
124:
121:
113:
102:
99:
95:
92:
88:
85:
81:
78:
74:
71: –
70:
66:
65:Find sources:
59:
55:
49:
48:
43:This article
41:
37:
32:
31:
19:
18:Stock picking
2779:Tender offer
2699:Public float
2669:Market trend
2659:Market depth
2479:Growth stock
2453:Buy and hold
2362:(Cap-to-GDP)
2335:
2202:Floor trader
2192:Market maker
2175:Floor broker
2163:Participants
2106:Golden share
2101:Common stock
2077:Third market
1756:
1750:
1717:
1713:
1707:
1690:
1686:
1680:
1669:. Retrieved
1666:Investopedia
1665:
1655:
1630:
1626:
1620:
1598:(1): 29–41.
1595:
1591:
1585:
1576:
1572:
1562:
1550:
1536:(2): 10–14.
1533:
1529:
1523:
1514:
1507:investopedia
1503:price target
1498:
1423:Equity value
1407:
1397:
1363:
1322:
1285:
1240:
1101:
1098:Gordon model
1095:
1074:
1060:
1057:EV to EBITDA
1048:
1039:
1027:
1014:
1006:
997:
988:
984:
976:
953:
736:
727:
723:
708:
699:
684:Please help
672:
644:
640:
619:
547:
532:
515:
503:
491:
485:
474:Growth stock
451:
447:
443:
439:
424:
415:
400:Please help
388:
364:
360:
345:
336:
321:Please help
309:
277:
265:risk premium
260:
256:
250:
238:
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159:target price
158:
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132:
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83:
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64:
52:Please help
47:verification
44:
2784:Uptick rule
2764:Stock split
2744:Squeeze-out
2739:Speculation
2684:Open outcry
2573:Block trade
2505:Pairs trade
1980:Risk return
1927:Price-sales
1865:(EV/EBITDA)
1579:(1): 59–72.
1036:EV to Sales
456:Growth rate
146:undervalued
2814:Categories
2789:Volatility
2769:Stock swap
2689:Order book
2440:strategies
2366:Book value
2234:Arbitrager
2229:Speculator
1877:(EV/Sales)
1831:(Cap Rate)
1671:2020-05-09
1491:References
1011:Market Cap
743:perpetuity
460:See also:
155:overvalued
80:newspapers
2405:Fed model
2400:EV/EBITDA
2315:Dark pool
2246:Regulator
2091:Types of
2057:Types of
1742:208925311
1542:192406897
1463:Fed model
1219:−
1199:⋅
1147:∞
1132:∑
1128:⋅
896:∗
702:June 2024
673:does not
633:T is the
597:−
545:formula:
478:PEG ratio
418:June 2024
389:does not
339:June 2024
310:does not
110:June 2024
2734:Slippage
2694:Position
2679:Momentum
2583:Dividend
2262:Exchange
2219:Investor
1871:(EV/GCI)
1738:ProQuest
1538:ProQuest
1416:See also
1325:dividend
1250:Meaning
796:earnings
2623:Haircut
2427:T-model
2239:Scalper
2059:markets
2008:Treynor
1997:Sortino
1976:(RAROC)
1837:(CROCI)
1734:3479656
1612:2976527
1247:Symbol
694:removed
679:sources
497:"; see
410:removed
395:sources
331:removed
316:sources
163:analyst
94:scholar
2644:Margin
2512:(PMPT)
2374:(CAPM)
2224:Hedger
2197:Trader
2170:Broker
2093:stocks
1986:Sharpe
1970:(ROTE)
1958:(ROCE)
1946:(RONA)
1911:(P/CF)
1905:(PVGO)
1825:(CAPE)
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1732:
1647:921914
1645:
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1343:
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1265:
1253:Units
1050:EBITDA
1045:EBITDA
620:where
480:, and
283:, and
151:stocks
141:stocks
96:
89:
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75:
67:
2799:Yield
2774:Trade
2709:Rally
2630:(IPO)
2518:(RMH)
2491:(MPT)
2470:(EMH)
2423:(SML)
2412:(NAV)
2386:(DDM)
2380:(CML)
2351:(APT)
2344:Alpha
2311:(STP)
2305:(DMA)
2299:(ECN)
2293:(MTF)
2287:(ATS)
2004:(SGR)
1993:(SIR)
1982:(RRR)
1964:(ROE)
1952:(ROC)
1940:(ROA)
1929:(P/S)
1923:(PEG)
1917:(P/E)
1899:(P/B)
1887:Omega
1883:(LTV)
1859:(E/P)
1843:(D/E)
1608:JSTOR
1323:last
101:JSTOR
87:books
2634:Long
2438:and
2368:(BV)
2355:Beta
1761:ISBN
1730:SSRN
1643:SSRN
1509:.com
1327:paid
1096:The
677:any
675:cite
637:rate
533:The
482:PVGO
393:any
391:cite
314:any
312:cite
285:beta
251:The
196:and
73:news
1722:doi
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1635:doi
1600:doi
1100:or
1085:P/E
1081:P/E
688:by
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257:DCF
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