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Category Archives for "Valuation Ratio"
14

Price Earnings to Growth and Dividend Yield (PEGY)

This is an advanced guide on how to calculate Price Earnings to Growth & Dividend Yield (PEGY) ratio with detailed interpretation, analysis, and example. You will learn how to utilize this ratio's formula to determine if a stock is currently undervalued or overvalued.

​What is PEGY Ratio?

In continuing to build upon the information provided by a company’s P/E ratio, the Price Earnings to Growth and Dividend Yield Ratio, also known as the PEGY ratio, is basically an enhanced version of the PEG ratio.

By throwing a firm’s dividend yield into the mix, you can now determine how much investors are currently willing to pay for both a stock’s earnings growth potential, and for its dividend payout.

Including a company’s dividend yield in the PEGY ratio helps to measure how inclined or disinclined an organization is to pay out earnings as investor dividends.

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Price Earnings to Growth Ratio (PEG)

This is a detailed guide on how to use the Price Earnings to Growth Ratio (PEG) to evaluate your company value.

This is an ultimate guide on how to calculate Price Earnings to Growth Ratio (PEG) ratio with thorough interpretation, analysis, and example. You will learn how to use its formula to identify if a stock is undervalued.

What is PEG Ratio of a Stock?​

The price earnings to growth ratio, also known as the PEG ratio, takes the price earnings ratio one step further.​

The PEG ratio compares a company’s current share price with its current earnings per share, and then measures that P/E ratio against the rate at which the firm’s earnings are growing.

The price earnings to growth ratio gives you a more refined look at a potential investment’s value, since an attractively high P/E ratio doesn’t always hold up under scrutiny once you take the company’s growth rate into account.

The price earnings to growth ratio can show you how expensive or inexpensive a company’s stock is in relation to the rate at which its earnings are currently growing, and the rate at which they’re expected to increase over the long-term.

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11

Price Earnings Ratio (P/E)

This is a detailed guide on how to use the Price Earnings (P/E) Ratio to evaluate your company value.

This is a complete guide on how to calculate Price Earnings (P/E) ratio with detailed analysis, interpretation, and example. You will learn how to use its formula to determine if a company is currently cheap or expensive.

What is PE Ratio and How It is Used?​

The price earnings ratio, or P/E ratio, is commonly used by investors to figure out what price the market is willing to pay for shares of a particular company’s stock.

More specifically, this ratio describes a stock’s market value in relation to the amount of earnings it’s generating.

Why is PE ratio so important?​

By comparing a firm’s current earnings per share (EPS), with its current market price per share, the price earnings ratio can help you to evaluate what a stock is currently worth, and can also help you to predict what it could be worth based on future earnings.

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Dividend Payout Ratio

This is a detailed guide on how to use the Dividend Payout Ratio to evaluate your company value.

This is an advanced guide on how to calculate Dividend Payout ratio with thorough interpretation, analysis, and example. You will learn how to use its formula to assess a company's ability to pay dividends to its shareholders.

What is Dividend Payout Ratio?

The dividend payout ratio is a very useful calculation for the potential investor because it indicates how much of a company’s earnings are being paid out in the form of dividends.

But beyond the important question of how much you can regularly expect to receive as a cash payout, quite a lot of additional information can be gleaned about a company from the result of this ratio.

Because it’s extremely detrimental to any business to cut or eliminate the payment of a dividend once one’s been established, companies strive to generate enough income to consistently support and increase their dividend payments.

If a business isn’t generating sufficient earnings, it will have to supplement investor payouts from its cash reserves, and this is simply not a sustainable practice over the long run.

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