# Valuation

Contents

- Cash Return
- Dividend Yield
- TTM Yield
- EV / EBITDA
- EV / EBIT (Premium Plus)
- EV / FCF (Premium Plus)
- EV / Sales (Premium)
- PEG Forward
- PEG Trailing
- Price / Book
- EBITDA / Enterprise Value
- Price / Cash Flow
- Price / Earnings
- Price / Earnings Adjusted
- Price / Free Cash Flow
- Price / Sales
- EV to Sales
- EV to Pre‑Tax Income
- EV to Total Assets
- Price / Tangible Book
- EV to FCF
- Earnings Power Value (Premium Plus)
- Margin of Safety (EPV) (Premium Plus)
- P/E Differential (Premium Plus)
- EV to EBIT
- EV to Forward EBITDA
- EV to Forward Sales
- EV to Forward EBIT
- Shiller PE (Premium Plus)
- Price to Graham Number (Premium Plus)
- Price to Lynch Fair Value (Premium Plus)
- Yacktman Forward RoR (Premium Plus)
- Capital Expenditure to EBITDA (Premium Plus)
- Buyback Yield (Premium)
- Forward P/E
- Piotroski F Score (Premium Plus)
- Shareholder Yield (Premium)
- Greenblatt Earnings Yield (Premium Plus)
- Chowder Rule 3‑Year Percent (Premium Plus)
- Chowder Rule 1‑Year Percent (Premium Plus)
- Chowder Rule 5‑Year Percent (Premium Plus)

## Cash Return

Unit: Percentage

Cash Return tells you how much Free Cash Flow a company generates as a percentage of how much it would cost an investor to buy out the entire business. It is calculated over a trailing twelve month period as the sum of Free Cash Flow and Interest Expense divided by Enterprise Value.

## Dividend Yield

Unit: Percentage

The percentage of price per share a company pays out to its shareholders as dividends annually, calculated by dividing the forecasted 12 month dividend payout by the current price.

This metric is updated live when markets are open.

## TTM Yield

Unit: Percentage

The percentage of price per share a company pays out to its shareholders as dividends annually, calculated by dividing the past 12 month dividend payouts by the current price.

This metric is updated live when markets are open.

## EV / EBITDA

Unit: Ratio

EV/EBITDA compares the value of a business, free of debt, to earnings before interest. It is calculated as Enterprise Value dividing EBITDA and is useful for comparing valuations regardless of capital structure. Lower EV/EBITDA values indicate less expensive valuation.

This metric is updated live when markets are open.

## EV / EBIT (Premium Plus)

Unit: Ratio

EV/EBIT compares the value of a business, free of debt, to earnings before interest. It is calculated as Enterprise Value dividing EBIT and is useful for comparing valuations regardless of capital structure. Lower EV/EBIT values indicate less expensive valuation.

This metric is updated live when markets are open.

## EV / FCF (Premium Plus)

Unit: Ratio

Enterprise Value to Free Cash Flow compares the total valuation of the company with its ability to generate cashflow. Lower values mean the company is better positioned to reinvest in its business.

## EV / Sales (Premium)

Unit: Ratio

EV/Sales shows how much it would cost to buy the company’s revenue stream. This is an improvement over the Price / Sales ratio in that it takes cash and debt into account. Lower values are better.

This metric is updated live when markets are open.

## PEG Forward

Unit: Ratio

Price/Earnings to Growth Forward Ratio, or PEG Forward, attempts to improve upon Price/Earnings comparisons by accounting for earnings growth. It is calculated by dividing the forward Price/Earnings Ratio by the estimated Earnings Per Share (EPS) growth for the next 5 years. The lower the PEG value, the cheaper the valuation; values of 1 suggests perfect pricing. If the expected growth or forward Price/Earnings value is negative, then no PEG ratio is calculated.

## PEG Trailing

Unit: Ratio

Price/Earnings to Growth Trailing Ratio, or PEG Trailing, attempts to improve upon Price/Earnings comparisons by accounting for earnings growth. It is calculated by dividing the current Price/Earnings Ratio by the average Earnings Per Share (EPS) growth rate over the past 5 years. The lower the PEG value, the cheaper the valuation; values of 1 suggests perfect pricing. If the historical growth or current Price/Earnings value is negative then no PEG ratio is calculated.

## Price / Book

Unit: Ratio

Compares a stock’s market value to the value of total assets less total liabilities (book value). This is also known as P/B or PB. A low P/B ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company.

This metric is updated live when markets are open.

## EBITDA / Enterprise Value

Unit: Ratio

This ratio of a company’s operating and non-operating profits vs it’s equity and debt provides a simple valution measure that is often more valid across companies than the P/E ratio.

This metric is updated live when markets are open.

## Price / Cash Flow

Unit: Ratio

Price to Cash Flow Ratio or PCF is an alternative to Price / Earnings. The argument for using cash flow over earnings is that the former is not easily manipulated, while earnings are affected by depreciation and other non-cash factors.

This metric is updated live when markets are open.

## Price / Earnings

Unit: Ratio

A valuation ratio of a company’s current share price compared to its per-share earnings over the past 12 months. This is also known as a stock’s multiple, P/E or PE ratio. In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E.

This metric is updated live when markets are open.

## Price / Earnings Adjusted

Unit: Ratio

The Price/Earnings ratio adjusted for the net cash (or debt) on the balance sheet, as if all cash were used to buyback stock and all debt were paid by issuing stock.

This metric is updated live when markets are open.

## Price / Free Cash Flow

Unit: Ratio

Price to Free Cash Flow is a valuation metric that compares a company’s market price to its level of annual free cash flow. This is similar to the valuation measure of price-to-cash flow but uses the stricter measure of free cash flow, which reduces operating cash flow by capital expenditures. This is done as companies need to maintain or expand their asset bases (capital expenditure) to either continue growing or maintain the current levels of free cash flow.

This metric is updated live when markets are open.

## Price / Sales

Unit: Ratio

Price to Sales is calculated by dividing a stock’s current price by its revenue per share for the trailing 12 months. This is also known as P/S or PS. It doesn’t take any expenses or debt into account but is particularly useful for comparing stocks with negative earnings.

This metric is updated live when markets are open.

## EV to Sales

Unit: Ratio

Enterprise Value to Sales indicates what is a company being valued per each dollar of revenue generated. This is similar to the Price / Sales ratio but adjusted for the company’s net debt.

This metric is updated live when markets are open.

## EV to Pre‑Tax Income

Unit: Ratio

Enterprise Value to pre-tax income indicates what is a company being valued per each dollar of Pretax Income generated.

This metric is updated live when markets are open.

## EV to Total Assets

Unit: Ratio

Enterprise Value to indicates what is a company being valued per each dollar of asset value. This should be the default EV multiple used in an asset driven business.

This metric is updated live when markets are open.

## Price / Tangible Book

Unit: Ratio

Compares a stock’s market value to the value of total assets less total liabilities and intangibles. A low ratio could mean that the stock is undervalued. However, it could also mean that something is fundamentally wrong with the company.

This metric is updated live when markets are open.

## EV to FCF

Unit: Ratio

Enterprise Value to Free Cash Flow indicates what is a company being valued per each dollar of free cash flow generated.

This metric is updated live when markets are open.

## Earnings Power Value (Premium Plus)

Unit: Number

The Earnings Power Value formula was popularized by value investor Bruce Greenwald. It may be an improvement over Discounted Cash Flow (DCF) models because it avoids the speculative assumptions about future growth. The seven step formula for EPV excludes future growth and growth cap expenses, making the assumption that future earnings will be like the historical average.

## Margin of Safety (EPV) (Premium Plus)

Unit: Percentage

The Margin of Safety (EPV) is a valuation measure based on Greenwald’s formula where higher values are safer choices. It is calculated as Earnings Power Value (EPV) minus the current price and divided by the EPV.

This metric is updated live when markets are open.

## P/E Differential (Premium Plus)

Unit: Ratio

The estimated price to earnings ratio for the in progress fiscal year minus the EPS growth forecasted for the next fiscal year. The P/E Differential indicate if a company is undervalued or overvalued relative to its current P/E and expected future earnings. Positive numbers mean overvaluation, negative number mean undervaluation. The higher the positive number, the more overvalued a stock is. Conversely the more negative a number is, the more undervalued a stock is.

This metric is updated live when markets are open.

## EV to EBIT

Unit: Ratio

Enterprise Value to Earnings Before Interest and Taxes indicates what is a company being valued per each dollar of EBIT generated.

This metric is updated live when markets are open.

## EV to Forward EBITDA

Unit: Ratio

Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization indicates what is a company being valued vs. the analyst-estimated forward EBITDA expected for the next fiscal year.

This metric is updated live when markets are open.

## EV to Forward Sales

Unit: Ratio

Enterprise Value to Sales (or Revenue) shows what is a company being valued vs. the analyst-estimated forward Sales expected for the next fiscal year.

This metric is updated live when markets are open.

## EV to Forward EBIT

Unit: Ratio

Enterprise Value to Earnings Before Interest and Taxes indicates what a company being valued vs. the analyst-estimated forward EBIT expected for the next fiscal year.

This metric is updated live when markets are open.

## Shiller PE (Premium Plus)

Unit: Ratio

The Shiller P/E ratio or Cyclically Adjusted PE Ratio (CAPE Ratio) uses the 10-year inflation adjusted average earnings to compute a P/E ratio that spans the typical business cycle. Stock Rover will only compute this value if at least 7 years of historical data are available.

## Price to Graham Number (Premium Plus)

Unit: Ratio

The price to Graham Number ratio is a conservative valuation measure based on Benjamin Graham’s classic formula. The Graham Number is one of his tests for whether a company is undervalued and is computed as the square root of 22.5 times the tangible book value per share times the diluted continuing earnings per share. Any stock with a value less than 1.0 is considered undervalued.

This metric is updated live when markets are open.

## Price to Lynch Fair Value (Premium Plus)

Unit: Ratio

The price to Peter Lynch Fair Value ratio is based on the famed investor’s valuation formula. It divides the price by the PEG rate times the 5-year EBITDA growth rate times continuing earnings per share. A stock with a value below 1.0 is considered undervalued.

This metric is updated live when markets are open.

## Yacktman Forward RoR (Premium Plus)

Unit: Percentage

The Yacktman Forward Rate of Return can be thought of as the return that investors buying the stock today can expect from it in the future. It is similar to earnings yield but uses the normalized free cash flow of the past seven years and adds in the 5 year growth rate.

This metric is updated live when markets are open.

## Capital Expenditure to EBITDA (Premium Plus)

Unit: Percentage

Cap Ex to EBITDA measures the amount a company is investing in its business relative to EBITDA generated in a given period. An understanding of the company and industry is important here as high expenditures can create future growth but may also indicate expensive maintenance of equipment.

## Buyback Yield (Premium)

Unit: Percentage

The net value of share buybacks over the past twelve months as a percent of the current market capitalization. A negative value indicates the company issues more stock than it purchases.

This metric is updated live when markets are open.

## Forward P/E

Unit: Ratio

The Forward Price to Earnings ratio divides the current price by the estimated EPS for the next fiscal year. Since some companies end their fiscal years in different months the Forward P/E ratio may assume a different timespan for different companies.

This metric is updated live when markets are open.

## Piotroski F Score (Premium Plus)

Unit: Number

The Piotroski score determines the financial strength of a company based on 9 criteria. Companies with a score of 8 or 9 are considered strong and a score between 0 and 2 indicates a weak company.

Unit: Percentage

Shareholder yield is the total of share buybacks and dividend payments to common shareholders over the past twelve months as a percent of the current market capitalization. A negative value indicates the company is profiting more from issuing new stock than it is spending on buybacks and dividends.

This metric is updated live when markets are open.

## Greenblatt Earnings Yield (Premium Plus)

Unit: Ratio

This variation of earnings yield compares Operating Income (a.k.a EBIT) to Enterprise Value. It is used by Joel Greenblat in his bestselling book The Little Book That Beats the Market

## Chowder Rule 3‑Year Percent (Premium Plus)

Unit: Name

Calculated as the sum of dividend yield and the 3 year compound annual dividend growth rate this metric was popularized on Seeking Alpha by user Chowder to find good investments. In its simplest form values over 12% are desired.

## Chowder Rule 1‑Year Percent (Premium Plus)

Unit: Name

Calculated as the sum of dividend yield and the 1 year compound annual dividend growth rate this metric was popularized on Seeking Alpha by user Chowder to find good investments. In its simplest form values over 12% are desired.

## Chowder Rule 5‑Year Percent (Premium Plus)

Unit: Name

Calculated as the sum of dividend yield and the 5 year compound annual dividend growth rate this metric was popularized on Seeking Alpha by user Chowder to find good investments. In its simplest form values over 12% are desired.