Essay About Dividend Yield P34 And Free Cash Flow

Mgt for Business Sequential Screening
mgt for businessSequential screening
Lakonishok screen
Market capitalization top 30%
P/B lowest 30%
ROA positive; D/E low
Liquidity; asset turnover ratio
Peter Lynch screen
P/E/ less than industry
Price-to-earnings-to growth (PEG) <1 Insider buying-to-selling ratio >1.5
Philip Fisher
Increase sales
Three-year compound growth rate greater than industry
PEG .1-.5
R&D expense %sales greater than industry
Growth in sales greater than growth in R&D expense
Bill Miller
Market cap <3times, estimate free cash flow for next 5 years PEG<1.5 Long-term debt ratio < industry average Fundamental valuation factors Dividend yield P34 Enterprise value-to-EBITDA Price-to-book lowest 30% Price-to-cash flow per share Price-to-equity P33 < industry Price-to-earnings-to-growth <1 or 0.1-0.5 Price-to-sales R&D-to-sales Fundamental solvency factors Cash-flow-from-operations ratio Cash ratio Current ratio Quick ratio Fundamental operating efficiency factors Cash-conversion cycle Cost management index Fixed-asset-turnover Total-asset turnover Inventory turnover Receivable turnover Fundamental operating profitability factors Gross profit margin Net profit margin Operating profit Return on net operating assets Return on asset P41 positive Return on equity Return on capital employed Fundamental financial risk factors Cash flow coverage ratio Interest coverage ratio/times interest earned ratio Debt-to-equity ratio low Financial leverage ratio Total debt ratio Fundamental liquidity risk factors Trading turnover Float capitalization Number of security ownersValuation factor Price / Earnings (P/E) Ratio P/E ratio = (Price per share)/(Earnings per share) This ratio measures how much investors are willing to pay per dollar of reported profits. P/E ratios are higher for firms with high growth prospects and lower for firms with greater risk, other things held constant. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. In order to select the stocks with relatively high expected growth, we set the P/E ratio 8 as the minimum while 50 as the maximum, 201 companies in the industry meet the criteria. Solvency factor Current Ratio Current ratio = (Current assets)/(Current liabilities) This ratio measures the dollars of current assets per dollar of current liabilities. The theory is that current liabilities will have to be paid off in the