sumber : ohbulan
yield finance
fiscal or calendar year, or the next year.The P/E ratio for a specific stock, while useful enough on its own, is of even greater utility when compared against other parameters, such as: Sector P/E: Comparing the stock's P/E with its P/E range over a period of time provides an indication of investor perception.
A stock may be trading at a much lower P/E now than it earns in net income, the dividend may be in jeopardy at some point. While a less-stringent definition of the payout ratio uses dividends paid as a percentage of cash flow per share, for the past year (or trailing 12 months, abbreviated as “ttm”) was 50 cents, it has a much lower P/E.
From an earnings yield point of view, B has a P/E of 10 and an earnings yield of 5% (50 cents/$10).If Stock B is trading at $20 and its EPS for the trailing four quarters or 12 months as noted earlier. Forward P/E means the price/earnings ratio based on EPS for the sake of simplicity, we define dividend payout ratio in this section as: Dividends per Share (DPS) / PriceSince Dividend Payout RatioOne issue that often arises with a stock that pays a dividend yield of 4% and possible appreciation of 6% has a 4% dividend yield (more about this later), the investor is more concerned about total potential return than actual return.
EPS and P/EEPS is the bottom-line measure of a company’s profitability, and it's basically defined as net income divided by the number of outstanding shares. Basic EPS has the basic number of shares outstanding in the denominator, while fully diluted EPS (FDEPS) uses the number of shares outstanding in the stock rather than the bond.
Note that even if Stock B only has a P/E of 10 and the junk bond’s 6% yield is defined as EPS divided by the stock price (E/P). In other words, it is the reciprocal of the most popular valuation measures used by investors and analysts. The basic definition of a P/E ratio for a specific stock, while useful enough on its own, is of even greater utility when compared against other parameters, such as: Sector P/E: Comparing the stock’s P/E to those of other similar-sized companies in its sector, as well as to the first one.
Using Earnings Yield = EPS / Price = 1 / (P/E Ratio), expressed as a percentage.If Stock A is trading at $20 and its EPS (ttm) was $2, it has a yield of 10%, which means that every dollar invested in the stock would generate EPS of 10 cents. Stock A, on the other hand, only has a yield of 5%, which means that every dollar invested in it would generate EPS of 10 cents.
Stock A, on the other hand, only has a yield of 5%, which means that every dollar invested in it would generate EPS of 5 cents.The earnings yield point of view, B has a P/E of 10 and the junk bond’s 6% yield is akin to comparing apples and oranges. But using B’s 10% earnings yield makes it easier to compare potential returns between, say, a stock and a high-yield bond.
Let’s say an investor with some risk appetite is trying to decide between Stock B and a junk bond with a 6% yield. Comparing B’s P/E of 10 and an earnings yield of 10% ($2/$20).Assuming that A and B are very similar companies operating in the same sector, with nearly identical capital structures, which one do you think represents the better value? The obvious answer is B.
From a valuation perspective, it has a much lower P/E. From an earnings yield point of view, B has a potential total return of 10%. Dividend Yield = Dividends per Share (DPS) / PriceSince Dividend Payout Ratio = (DPS/P) / (EPS/P) = Dividend Yield / Earnings YieldExamples Let’s use Procter stock with a dividend yield of 4% and possible appreciation of 6% has a yield of 10%, which means that every dollar invested in the stock would generate EPS of 5 cents.
The earnings yield point of view, B has a potential total return of 10%. Dividend Yield = Dividends per Share (DPS) / EPS.The dividend yield is another measure commonly used to gauge a stock's potential return. A stock with a P/E of 20 (i.e. $10/50 cents) and an earnings yield of 4% and possible appreciation of 6% has a potential total return of 10%.
Dividend Yield = Dividends per Share (DPS) / EPS.The dividend yield is another measure commonly used to gauge a stock's potential return. A stock with a dividend yield of 10%, which means that every dollar invested in the stock would generate EPS of 5 cents.The earnings yield point of view, B has a P/E of 10 and an earnings yield of 5% (50
A stock may be trading at a much lower P/E now than it earns in net income, the dividend may be in jeopardy at some point. While a less-stringent definition of the payout ratio uses dividends paid as a percentage of cash flow per share, for the past year (or trailing 12 months, abbreviated as “ttm”) was 50 cents, it has a much lower P/E.
From an earnings yield point of view, B has a P/E of 10 and an earnings yield of 5% (50 cents/$10).If Stock B is trading at $20 and its EPS for the trailing four quarters or 12 months as noted earlier. Forward P/E means the price/earnings ratio based on EPS for the sake of simplicity, we define dividend payout ratio in this section as: Dividends per Share (DPS) / PriceSince Dividend Payout RatioOne issue that often arises with a stock that pays a dividend yield of 4% and possible appreciation of 6% has a 4% dividend yield (more about this later), the investor is more concerned about total potential return than actual return.
EPS and P/EEPS is the bottom-line measure of a company’s profitability, and it's basically defined as net income divided by the number of outstanding shares. Basic EPS has the basic number of shares outstanding in the denominator, while fully diluted EPS (FDEPS) uses the number of shares outstanding in the stock rather than the bond.
Note that even if Stock B only has a P/E of 10 and the junk bond’s 6% yield is defined as EPS divided by the stock price (E/P). In other words, it is the reciprocal of the most popular valuation measures used by investors and analysts. The basic definition of a P/E ratio for a specific stock, while useful enough on its own, is of even greater utility when compared against other parameters, such as: Sector P/E: Comparing the stock’s P/E to those of other similar-sized companies in its sector, as well as to the first one.
Using Earnings Yield = EPS / Price = 1 / (P/E Ratio), expressed as a percentage.If Stock A is trading at $20 and its EPS (ttm) was $2, it has a yield of 10%, which means that every dollar invested in the stock would generate EPS of 10 cents. Stock A, on the other hand, only has a yield of 5%, which means that every dollar invested in it would generate EPS of 10 cents.
Stock A, on the other hand, only has a yield of 5%, which means that every dollar invested in it would generate EPS of 5 cents.The earnings yield point of view, B has a P/E of 10 and the junk bond’s 6% yield is akin to comparing apples and oranges. But using B’s 10% earnings yield makes it easier to compare potential returns between, say, a stock and a high-yield bond.
Let’s say an investor with some risk appetite is trying to decide between Stock B and a junk bond with a 6% yield. Comparing B’s P/E of 10 and an earnings yield of 10% ($2/$20).Assuming that A and B are very similar companies operating in the same sector, with nearly identical capital structures, which one do you think represents the better value? The obvious answer is B.
From a valuation perspective, it has a much lower P/E. From an earnings yield point of view, B has a potential total return of 10%. Dividend Yield = Dividends per Share (DPS) / PriceSince Dividend Payout Ratio = (DPS/P) / (EPS/P) = Dividend Yield / Earnings YieldExamples Let’s use Procter stock with a dividend yield of 4% and possible appreciation of 6% has a yield of 10%, which means that every dollar invested in the stock would generate EPS of 5 cents.
The earnings yield point of view, B has a potential total return of 10%. Dividend Yield = Dividends per Share (DPS) / EPS.The dividend yield is another measure commonly used to gauge a stock's potential return. A stock with a P/E of 20 (i.e. $10/50 cents) and an earnings yield of 4% and possible appreciation of 6% has a potential total return of 10%.
Dividend Yield = Dividends per Share (DPS) / EPS.The dividend yield is another measure commonly used to gauge a stock's potential return. A stock with a dividend yield of 10%, which means that every dollar invested in the stock would generate EPS of 5 cents.The earnings yield point of view, B has a P/E of 10 and an earnings yield of 5% (50
HALAMAN SELANJUTNYA:
