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
Essay About Dividend Yield P34 And Free Cash Flow
Essay, Pages 1 (71 words)
Latest Update: May 31, 2021
//= get_the_date(); ?>
Views: 118
//= gt_get_post_view(); ?>
Dividend Yield P34 And Free Cash Flow. (May 31, 2021). Retrieved from https://www.freeessays.education/dividend-yield-p34-and-free-cash-flow-essay/