Stack looks at historical measures of valuation: price-to-book ratios, price-to-dividend ratios and price-to-earnings ratios.
The price targets are getting adjusted lower, and market caps are shrinking, but so are price to earnings and price to book ratios.
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It holds Apple and Sun, but also some dot-coms and smaller techs, all having lots of cash and low price-to-earnings and price-to-book ratios.
The stocks of Chinese banks fell this year and were trading at price-to-book ratios that assumed these institutions would suffer substantial losses on their loan portfolios.
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He screens for stocks using academic theories, which mostly boils down to companies with low price-to-book ratios, low price-to-earnings ratios, low short interest and positive earnings momentum.
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.
To give two high-profile examples, Ibbotson and Associates and the academic duo of Eugene Fama and Kenneth French did similar studies that found that value stocks, as measured by low price-to-book ratios, outperform growth stocks over the long run.
Although many companies announce they "plan" to buy back their shares, Fried filters out the noise and goes for companies actually doing the buybacks and then screens for stocks trading at low price-to-earnings ratios, low price-to-book ratios and which meet an overall "value" criteria.
Privately held fortunes were valued at book value or by coupling estimates of revenues, profits or book value to prevailing ratios for similarly publicly traded companies.
Everything looked pretty rosy in terms of earnings estimates, book-to-bill ratios, etc.
But the impact can be all too real, as write-downs reduce overall book value and increase leverage ratios, a particular concern in these debt-averse times.
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Their values, their book values, liquidate values, bad debt ratios, ROEs, ROAs, whatever you want to look at, were improving.
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IPOs has always been strongly correlated with market peaks, measured by the ratio of capitalisation to the book values of companies and by price-earnings ratios.
In addition, ratios of price to sales and price to book value are bumping along their lowest levels of the past four years and are at substantial discounts to their five-year averages.
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He likes Ryerson for its rock-bottom ratios like 0.14 times sales, one times book value and 10.7 times trailing 12 months of earnings.
Use multiple valuation metrics--not just the ratio of price-to-earnings but the ratios of price-to-sales and price-to-book.
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