Most Shared Value Investing News Stories of the Week

Here’s a list of the top stories this week at Value Investing News based on the number of times the story was shared on top social media sites: Aim for the Middle Works if Small, Fails if Large What We’re Reading ~ 5/31/2012 Warren Buffett’s Stock Buying Secret Revealed What We’re Reading ~ 6/6/12 Presence

Price To Tangible Book Value Backtest

I recently reported on the results of my price-to-book ratio backtest. Shortly after running that backtest, I realized that many value investors probably actually prefer using price to tangible book value. The price to tangible book value ratio is simply the current price of the stock divided by the latest quarterly tangible book value per share. Tangible

Most Shared Value Investing News – St. Patrick’s Week 2012

Here’s a list of the most shared articles posted on Value Investing News this past week: Great Warren Buffett / Berkshire Hathaway Resources Why George Soros Owns Comverse Technology (CMVT): Stock of the Week Third Point’s 2011 Letter: Rationale for Owning UniCredit, Skyworks, Abercrombie & More Ratios for evaluating turnarounds A Value Investor’s Take on

Return on Invested Capital Variation Backtest

Last Friday I asked my Twitter followers, “Which fundamental should I backtest next?” Andrew Martin replied. Here’s a copy of our conversation: @ACJMARTIN: @FatPitch ROC @FatPitch: @ACJMARTIN What’s your definition of ROC? @ACJMARTIN: @FatPitch it’s more like ROIC. Op profit + deprec + goodwill amort – tax – capex divide by total assets – cash. I used

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