Earnings Yield & How to Calculate Earnings Yield
Earnings Yield in its simplest form is earnings dividend by price. It is expressed as a percentage of the investment value and is the reciprocal of the price/earnings (PE ratio).
...Market Capitalization: Calculation and Categories
The market capitalization calculation is an important and useful stock valuation formula for investment analysis. Market capitalization (a.k.a. market cap) is the total market value of all the company’s outstanding equity shares. This represents the total value the market has placed on the value of a company’s common stock.
...Explain Free Cash Flow and Free Cash Flow Yield
Free Cash Flow determines whether a company has sufficient cash resources to meet the goals of the entity and its’ stakeholders (debt reduction, dividends, stock buybacks, acquisitions, etc.).
Free Cash Flow Yield determines if the stock price provides good value for the amount of free cash flow being generated.
Gross Profitability Ratio – Qualitative Analysis
The Gross Profitability Ratio is gaining credibility in value investing circles because it provides valuable and predictive qualitative analysis when combined with valuation metrics. Some analysts argue it is the single best qualitative metric with which to compare multiple stocks (particularly within the same industry) that have already been determined to be bargains.
...Dividend Coverage Ratios: How Safe is Your Dividend?
Dividend Coverage Ratios allow analysts to evaluate the safety of a company’s dividend. Many investors concentrate on the dividend yield but don’t give sufficient attention to the safety of that dividend.
In the long run companies must create enough cash flow to pay expenses, invest in the future (capital expenditures), service their debt (if any), and return money to shareholders.
...Dividend Yield: Definition, Calculation, & Relationship
Dividend yield is the annual dividend per share of a company compared to the price of the stock expressed as percentage. In other words it tells you the percentage dividend return the stock owner receives on the current price of a stock.
The dividend yield has historically provided approximately one-half of long term total stock market returns to investors. It’s a little less than one-half for those who take their dividend and little over one-half for those who reinvest their dividends.
...About
As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
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