Most Shared Value Investing News – Week Ending March 3, 2012

Here’s a list of the most shared articles posted on Value Investing News this past week: Berkshire Hathaway Inc. 2011 Annual Report Top 10 Hedge Funds By Net Gains Since Inception Jeremy Grantham’s 10 Investment Lessons Grantham: 10 Investment Lessons Dan Loeb’s Third Point Starts Apple (AAPL) Stake: Top Positions & Latest Exposures Beta of

Price-To-Book Ratio (P/B Ratio) Backtest

The price-to-book ratio (P/B ratio) is a popular valuation ratio. It is calculated by taking the latest stock price and dividing it by book value per share.  Book value is simply the total assets found on the balance sheet minus  liabilities, which is referred to as common shareholder’s equity. To get book value per share

Returns by Market Capitalization Over the Past Decade

Market capitalization is simply the total dollar value of all of a company’s outstanding shares of stock. It is often referred to as market cap for short. You can calculate market cap for a company by taking the current market price for a share of stock and multiplying it by the number of shares outstanding

Price to Current Fiscal Year Earnings Backtest

Another widely used valuation ratio that Richard Tortoriello examined in his book Quantitative Strategies for Achieving Alpha is the P/E ratio. It is probably the most recognizable and used stock valuation metric. There are several variations on this popular fundamental ratio, including using trailing twelve-month earnings per share, one-year forward earnings per share estimate, and the use of

Current Best Values: Return on Enterprise Value

The results for the Return on Enterprise Value backtest were very impressive, so I thought readers would be interested in seeing a list of the top 1% of stocks ranked based on Net Cash Flow / Enterprise Value.  Here are the current results:

Return on Enterprise Value (ROEV) Backtest

Return on Enterprise Value (ROEV) is a stock valuation ratio that can be useful for comparing the values of different companies. It is simply net cash flow divided by enterprise value. Net cash flow is net profit plus amounts charged off for depreciation, depletion, and amortization. I was unfamiliar with this stock fundamental until Ken Faulkenberry

Current Best Values: Enterprise Value to EBITDA Ratio

Given that we recently backtested the highly effective Enterprise Value to EBITDA ratio that was presented in Quantitative Strategies for Achieving Alpha, I thought folks might be interested in seeing the current results for this screen. Here are the top 1% stocks ranked on EV/EBITDA:

Enterprise Value to EBITDA Ratio Backtest

The EBITDA to enterprise value (EV) ratio is a widely used valuation multiple to assess the relative value of companies. It is calculated by simply taking earnings before interest, taxes, depreciation and amortization (EBITDA) and dividing by enterprise value (EV). Of course, you need to know the definitions of both of those terms to really

Book Review: Quantitative Strategies for Achieving Alpha

Over the holidays, I read Quantitative Strategies for Achieving Alpha by Richard Tortoriello. I found this book to be very different than most of the books I’ve read on investing. Tortoriello spends a substantial portion of the book walking the reader though his process for evaluating various stock fundamentals. He then tests each of these

Closing Out 2011, Kicking Off 2012

Happy new year fellow investors! I hope you enjoyed the holidays as much as I did. It was great spending time with my family this past week, taking a break from work, and reflecting on the future. 2011 was a challenging year, especially for fellow investors and website owners. The long hoped for economic recovery