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3. Dividend Yield [YF]: the higher a stocks yield, the more desirable the stock will be in comparison with other investments. Income stocks tend to have high current yields. Low (or no) current yield is characteristic of growth stocks.
yield = dividend per share
current price
4. Price/Earnings Ratio (P/E) [YF]: a measure of a stock's relative expensiveness compared to its earnings. A low P/E (<10:1) usually signals a stable, mature company, while a high P/E (>20:1) indicates that rapid growth is expected. A high P/E ratio may also be an indication that a stock is overvalued. If the P/E ratio is less than the industry average the stock may be undervalued and rise in price (see quarterly Corporate Scoreboard in Business Week).
P/E = market price
earnings per share
5. Dividend Market Value [C]: the part of the stock share represented by $1 of dividends. If a stock is selling, for example, at $72 per share and has paid a dividend of $3, the market value is 24 times the dividend. Using the Dow Jones Industrial Average as a benchmark, analysts judge that a stock is fully valued , and thus not a good buy, when it is trading at or above 30 times each dollar of dividends. It would, however, be an attractive value if the stock price were 15 or fewer times the dividend amount.
dividend market value = current price per share
dividend
6. 52 Week High and Low Market Price [YF]: the highest and lowest price for which one share has been sold over the past year. Indicates a range of prices against which current price can be compared.
7. Beta [YF]: helps to assess the risk of a stock, relative to a benchmark (the market as a whole). By definition, the beta value of the benchmark--in most cases an index like the S&P 500--is 1.00. A stock with a beta of 1.5, for example tends to move 50% more than the total market in the same direction. An issue with a beta of 0.5 tends to move 50% less.
beta > 1.00 = more price volatility (risky)
beta < 1.00 = less price volatility (less market-related risk)
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