Audio Archives
Client Letters
OID Features Online
OID.com Exclusive
Features
Indexes:
Investors
Funds et al.
Companies &
Investments
Contact Us
About Your
User Name
& Password
Free Reprint
Online Excerpts
Investors in
Our Latest Edition
Companies &
Investments in
Our Latest Edition
About OID
Subscribe
Online Advertising
Online Classifieds
Employment
Opportunities
TWEEDY, BROWNE COMPANY L.P.
What Has Worked in Investing
(continued from preceding
page)
Average Values of Price to Book Value, Price/Earnings Ratio and Stock Price for Ten Equal-Number Groups of New York Stock Exchange Listed Firms Constructed on the Basis of Increasing Price to Book Values (1964-1982)
|
Price/Book Value Group 1 (Lowest) 2 3 4 5 6 7 8 9 10 (Highest) |
Price/Book Value Ratio |
Price/Earnings Ratio |
Capitalization (Millions) |
Stock Price |
As Table 35 indicates, lower price to book value ratios were associated with lower price/earnings ratios, smaller market capitalizations and lower stock prices.
Donald Keim, in Earnings Yield and Size Effects: Unconditional and Conditional Estimates examined price/earnings ratio and market capitalization for the period from March 31, 1951 to December 1986 for all New York and American Stock Exchange listed companies with a December 31 fiscal year, including all such companies which had been sold, merged or declared bankrupt. Each March 31, all of the culled companies were ranked according to price/earnings ratio and sorted into deciles. The annual investment returns, average price/earnings ratio and average market capitalization for each of the ten groups are presented in Table 36.
Page 39 of 42
14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27
28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42
|
(Return to Table of Contents) |
(continue to the next page) |
©Copyright 1996-2010 Outstanding Investor Digest, Inc. All rights reserved.
295 Greenwich St., Box 282, New York, NY 10007 (212) 925-3885