One is that you have to pay close attention to fundamentals like earnings, operating cash flow and book value.
Russell Croft, managers of the Croft Value and Croft Income funds, combine low earnings multiples with other indicators, such as cash flow, book value and debt-to-enterprise value.
Value stocks had lowest prices relative to earnings, cash-flow and book value and the highest cash dividends.
Growth stocks had the highest prices relative to earnings, cash-flow and book value as well as the lowest cash dividends.
It sells at eight times my estimate of 2009 earnings, less than five times cash flow, one times book value and 1.6 times sales.
By contrast, Facebook trades at 60 times trailing 12-month earnings, 49 times prospective 12-month earnings, 43 times cash flow and 12 times book value.
It sells at one times cash flow, 40% of book value and 10% of annual revenue.
On our relative valuation tables, France is looking good trading at 5.4 times cash flow and 1.54 times book value.
Other models examine book value, cash flow, revenues, and other measures.
At 50% of annual revenue, 4.5 times cash flow, 1.25 times book value and 10 times my estimate of 2011 earnings, it combines cheapness with growth.
Average annual revenue increased 7.8%, EBITDA at 6.5%, free cash flow at 1.8% and book value at 13.6%.
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The most valuable indicators in the Continental telecom group, according to White, are price to cash flow, dividend yield and price to book.
Over the same time period its revenue per share increased at an annual rate of 5.2%, free cash flow at 19.3% and book value at 8.1%.
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In the past five years, Viacom had average annual growth rates of 6.5% for revenue, 22.3% for EBITDA, 19% for free cash flow and 8.7% for book value.
The price is also 15% of annual revenue, 30% of book value and 2 times cash flow.
In the same time, EBITDA grew at 21.4%, free cash flow grew at 9.8% and book value grew at 34.7%.
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Today's price is 30% of annual revenue, 100% of book value, 3 times cash flow and 13 times likely 2009 earnings.
It trades at 15 times trailing earnings, 1.2 times book value and 4 times cash flow, with a 3.7% dividend yield.
But at 5 times prospective 2010 earnings, 40% of book value, 2 times cash flow and 10% of annual revenue, Magma makes sense even for someone with low expectations for the sector.
The company has experienced notable average annual growth in the past five years: Revenue increased at 8.5%, EBITDA increased at 30.3%, free cash flow increased at 28.4% and book value increased at 22.6%.
In the last five years, it has grown revenue per share at a rate of 14.8% annually, EBITDA at 29.5% annually, free cash flow at 14.6% annually and book value at 13.3% annually, according to its 10-year financials.
You cannot book reserves, or enjoy the cash flow that production brings.
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This simple double entry book keeping shows that the net cash flow into the economy produced by government spending is zero, nada, nothing.
He also looks at price-to-book, price-to-cash flow, price-to-cash and debt.
For long picks, the Ward Ferry team puts a lot of emphasis on such classic numbers as return on equity, free cash flow, dividend yields and price-to-book ratios.
Price-to-book and price-to-cash flow factors resulted in different results.
The stock's multiples of earnings, cash flow (in the sense of net plus depreciation) and book value all stand at discounts to their respective five-year averages.
The first of our three stock screens selected companies in the Worldscope database whose prices today are at historically low multiples of earnings, cash flow (in the sense of net income plus depreciation) and book value.
Most importantly, in contrast to earnings, sales and book value, companies have a much harder time manipulating cash flow.
Now at 30% of revenue, 90% of book value, 7 times 2009 earnings and 3 times cash flow (in the sense of net income plus depreciation), and with a 3.6% dividend yield, it's too cheap to pass up.
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