1069:
1246:
904:
53:
is a formula that states the returns earned by holders of a company's stock in terms of accounting variables obtainable from its financial statements. The T-model connects fundamentals with investment return, allowing an analyst to make projections of financial performance and turn those projections
1773:
He provided a proof that this model is mathematically identical to the original T-model, and gives identical results under certain simplifying assumptions about the accounting used. In practice, when used as a practical forecasting tool it may be preferable to the standard T-model, because the
190:
2301:
1518:
1130:
1413:
In 2003, Estep published a version of the T-model that does not rely on estimates of return on equity, but rather is driven by cash items: cash flow from the income statement, and asset and liability accounts from the balance sheet. The cash-flow T-model is:
1769:
842:
2124:
1064:{\displaystyle {\mathit {P}}+\Delta {\mathit {P}}=({\mathit {A}}+\Delta {\mathit {A}})({\mathit {B}}+\Delta {\mathit {B}})\,={\mathit {A}}B+{\mathit {B}}\Delta {\mathit {A}}+{\mathit {A}}\Delta {\mathit {B}}+\Delta {\mathit {A}}\Delta {\mathit {B}}\,}
1401:
2377:
values for growth, price/book, etc. are plugged in, the T-Model gives a close approximation of actually realized stock returns. Unlike some proposed valuation formulas, it has the advantage of being correct in a mathematical sense (see
651:
1865:
390:
1601:
2002:, the familiar earnings yield. In other words, earnings yield would be a correct estimate of expected return for a stock that always sells at its book value; in that case, the expected return would also equal the company's
554:
1303:
1921:
705:
2181:
756:
72:
2000:
2205:
1419:
1241:{\displaystyle {\frac {\Delta P}{P}}={\frac {\Delta {\mathit {B}}}{\mathit {B}}}+{\frac {\Delta {\mathit {A}}}{\mathit {A}}}\left({\mathit {1}}+{\frac {\Delta {\mathit {B}}}{\mathit {B}}}\right)}
1774:
specific accounting items used as input values are generally more robust (that is, less susceptible to variation due to differences in accounting methods), hence possibly easier to estimate.
1959:
2393:: it is mathematically complete, and each connection between company fundamentals and stock performance is explicit so that the user can see where simplifying assumptions have been made.
2352:
585:, and that a shareholder sells or buys enough shares to maintain her proportionate holding of the company's stock. Then the portion of total return due to distributions can be written as
1610:
1577:
2563:
763:
2022:
1782:
Some familiar valuation formulas and techniques can be understood as simplified cases of the T-model. For example, consider the case of a stock selling exactly at book value (
463:
416:
439:
1120:
1094:
887:
1310:
2411:
and its various descendants; fundamental models attempt to forecast return from a company's expected future financial performance, whereas CAPM-type models regard
2396:
Some of the practical difficulties involved with financial forecasts stem from the many vicissitudes possible in the calculation of earnings, the numerator in the
588:
309:
465:= distributions, i.e. dividends plus or minus the cash effect of company share issuance/buybacks. Consider a company whose sales and profits are growing at rate
275:
1789:
244:
216:
327:
1581:
2556:
2009:
Consider the case of a company that pays the portion of earnings not required to finance growth, or put another way, growth equals the reinvestment rate
2508:
Dwyer, Hubert and
Richard Lynn, "Is The Estep T-Model Consistently Useful?" Financial Analysts Journal, November/December 1992, Vol. 48, No. 6: 82–86.
486:
1260:
2549:
574:= book value. The company may have money left over after paying dividends and financing growth, or it may have a shortfall. In other words,
185:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {{\mathit {R}}OE-{\mathit {g}}}{{\mathit {P}}B}}+{\frac {\Delta PB}{PB}}{\mathit {(}}1+g)}
2794:
1872:
656:
2523:
Erzegovesi, Luca, "Come impostare la previsione dei rendimenti azionari: il T-model," Economia & Management 1988, v. 2, p. 93–104
2137:
710:
2296:{\displaystyle {\frac {\mathit {P}}{\mathit {E}}}={\frac {{\mathit {R}}OE-{\mathit {g}}}{{\mathit {R}}OE({\mathit {T}}-{\mathit {g}})}}}
2447:
Estep, Preston W., "A New Method For
Valuing Common Stocks", Financial Analysts Journal, November/December 1985, Vol. 41, No. 6: 26–27
1964:
2537:
Yamaguchi, Katsunari "Supply-side
Estimate of Expected Equity Return on Industrial Japan", Security Analysts Journal, September 2005
1786:) at the beginning and end of the holding period. The third term of the T-Model becomes zero, and the remaining terms simplify to:
1513:{\displaystyle {\mathit {T}}={\frac {{\mathit {C}}F}{\mathit {P}}}+{\boldsymbol {\Phi }}g+{\frac {\Delta PB}{PB}}{\mathit {(}}1+g)}
2819:
2527:
Estep, Tony, "Cash Flows, Asset Values, and
Investment Returns: Brief Summary", Banc of America Capital Management, March 2003
469:. The company funds its growth by investing in plant and equipment and working capital so that its asset base also grows at
2520:
Asikoglu, Yaman and Metin R. Ercan, "Inflation Flow-Through and Stock Prices," Journal of
Portfolio Management, Spring 1992
2813:
3296:
3236:
3032:
2938:
2475:
Estep, Tony (July 1987), "Security
Analysis And Stock Selection: Turning Financial Information Into Return Forecasts",
3022:
2990:
2894:
2848:
2831:
2784:
2408:
35:
2456:
Estep, Preston, "Cash Flows, Asset Values, and
Investment Returns", The Journal of Portfolio Management, Spring 2003
1926:
2807:
2801:
1764:{\displaystyle {\boldsymbol {\Phi }}={\frac {{\mathit {M}}ktCap-grossassets+totalliabilities}{{\mathit {M}}ktCap}}}
2316:
3347:
2424:
578:
may be positive (company has money with which it can repurchase shares) or negative (company must issue shares).
3196:
2871:
2429:
1527:
837:{\displaystyle (3){\frac {\mathit {D}}{\mathit {P}}}={\frac {{\mathit {R}}OE-{\mathit {g}}}{{\mathit {P}}B}}}
3150:
3011:
2906:
2789:
2412:
2390:
2119:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {{\mathit {R}}OE-{\mathit {R}}OE(1-D/E)}{{\mathit {P}}B}}}
55:
3038:
2536:
3176:
2985:
3311:
3231:
2996:
2980:
2943:
2825:
2768:
2736:
2465:
Wilcox, Jarrod W., "The P/B-ROE Valuation Model," Financial
Analysts Journal, Jan–Feb 1984, pp 58–66.
3342:
3241:
3186:
3110:
2970:
2900:
2729:
2702:
444:
397:
39:
3090:
2386:
3281:
3256:
3216:
3201:
3120:
3059:
3017:
2761:
2671:
2661:
2492:
1396:{\displaystyle (4){\frac {\Delta P}{P}}={\mathit {g}}+{\frac {\Delta PB}{PB}}{\mathit {(}}1+g)}
3145:
3130:
2882:
846:
Now we need a way to write the other portion of return, that due to price change, in terms of
421:
218:= total return from the stock over a period (appreciation + "distribution yield" — see below);
1105:
1079:
872:
646:{\displaystyle {\frac {{\mathit {D}}iv}{\mathit {P}}}+{\frac {{\mathit {X}}CF}{\mathit {P}}}}
3246:
3166:
2962:
2843:
2719:
2638:
2594:
2572:
2484:
3321:
3316:
3251:
3226:
3161:
3135:
3115:
3074:
3069:
3064:
3049:
3044:
2932:
2866:
2858:
2746:
2633:
1860:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {{\mathit {R}}OE-{\mathit {g}}}{1}}=ROE}
2382:); however, this by no means guarantees that it will be a successful stock-picking tool.
385:{\displaystyle (2){\mathit {T}}={\frac {\mathit {D}}{\mathit {P}}}+{\frac {\Delta P}{P}}}
288:
2185:
This is the standard Gordon "yield plus growth" model. It will be a correct estimate of
257:
3276:
3271:
3171:
3156:
2917:
2912:
2877:
2676:
2643:
2589:
2581:
229:
201:
2407:
Note that all "fundamental valuation methods" differ from economic models such as the
3336:
3140:
3125:
3100:
3054:
3006:
2709:
2666:
2653:
2604:
2532:
Wilcox, Jarrod and
Philips, Thomas K., "The P/B-ROE Model Revisited" (March 10, 2004)
2404:
of the T-Model driven by cash items: cash flow, gross assets, and total liabilities.
2385:
Still, it has advantages over commonly used fundamental valuation techniques such as
1596:{\displaystyle {\mbox{(net income + depreciation + all other non-cash charges),}}\,}
3301:
3221:
3191:
3181:
3001:
2975:
2724:
2714:
2697:
2628:
2623:
2599:
2400:
term. With an eye toward making forecasting more robust, in 2003 Estep published a
31:
2415:
as the sum of a risk-free rate plus a premium for exposure to return variability.
3306:
3286:
3266:
3261:
3206:
3095:
3027:
549:{\displaystyle {\mathit {X}}CF={\mathit {E}}-{\mathit {D}}iv-{\mathit {g}}BV\,}
311:= the company's return on equity, i.e. earnings during the period / book value;
3291:
3211:
2888:
2751:
2526:
2309:
cannot be related to growth by a simple rule of thumb such as the so-called "
1493:
1376:
165:
2927:
2922:
2837:
2756:
2310:
2488:
3105:
2741:
1298:{\displaystyle {\frac {\Delta {\mathit {B}}}{\mathit {B}}}={\mathit {g}}}
477:. Then the amount of earnings retained for reinvestment will have to be
2496:
2401:
2379:
46:
17:
2692:
1916:{\displaystyle {\mathit {R}}OE={\frac {\mathit {E}}{{\mathit {B}}V}}}
700:{\displaystyle {\mathit {R}}OE={\frac {\mathit {E}}{{\mathit {B}}V}}}
473:, and debt/equity ratio is held constant, so that net worth grows at
2541:
2176:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {D}{\mathit {P}}}}
751:{\displaystyle {\mathit {P}}B={\frac {\mathit {P}}{{\mathit {B}}V}}}
581:
Assume that the company buys or sells shares in accordance with its
2365:
The T-model is also closely related to the P/B-ROE model of Wilcox
2615:
2531:
2200:
is constant, the familiar price–earnings ratio can be written as:
277:= the ratio of price / book value at the beginning of the period.
34:. For the distribution model similar to Normal distribution, see
2193:
does not change and the company grows at its reinvestment rate.
1995:{\displaystyle {\mathit {T}}={\frac {\mathit {E}}{\mathit {P}}}}
246:= the growth rate of the company's book value during the period;
2545:
2325:
2282:
2272:
2256:
2247:
2231:
2217:
2212:
2167:
2153:
2143:
2105:
2067:
2051:
2038:
2028:
1986:
1981:
1970:
1945:
1932:
1902:
1895:
1878:
1834:
1818:
1805:
1795:
1738:
1627:
1533:
1448:
1438:
1425:
1343:
1290:
1279:
1272:
1227:
1220:
1204:
1191:
1184:
1167:
1160:
1055:
1045:
1032:
1022:
1012:
1002:
989:
975:
962:
949:
936:
923:
910:
823:
814:
798:
784:
779:
737:
730:
716:
686:
679:
662:
637:
624:
610:
597:
534:
518:
508:
492:
450:
403:
358:
353:
342:
126:
117:
101:
88:
78:
1405:
Substituting (3) and (4) into (2) gives (1), the T-Model.
322:
The return a shareholder receives from owning a stock is:
1588:(net income + depreciation + all other non-cash charges),
1586:
2319:
2305:
From this relationship we recognize immediately that
2208:
2140:
2025:
1967:
1929:
1875:
1792:
1613:
1584:
1530:
1422:
1313:
1263:
1133:
1108:
1082:
907:
875:
766:
713:
659:
591:
489:
447:
424:
400:
330:
291:
260:
232:
204:
75:
3083:
2958:
2857:
2777:
2685:
2652:
2613:
2579:
2346:
2295:
2175:
2118:
1994:
1953:
1915:
1859:
1763:
1595:
1571:
1512:
1395:
1297:
1240:
1114:
1088:
1063:
881:
836:
750:
699:
645:
548:
481:. After paying dividends, there may be an excess:
457:
433:
410:
384:
303:
269:
238:
210:
184:
30:"T model" redirects here. For the automobile, see
1954:{\displaystyle {\mathit {B}}V={\mathit {P}}\,}
850:. For notational clarity, temporarily replace
2557:
8:
2347:{\displaystyle {\frac {{\mathit {P}}/E}{g}}}
27:Connects fundamentals with investment return
2564:
2550:
2542:
66:Mathematically the T-model is as follows:
58:that can be used in investment selection.
2330:
2324:
2323:
2320:
2318:
2281:
2280:
2271:
2270:
2255:
2254:
2246:
2245:
2230:
2229:
2226:
2216:
2211:
2209:
2207:
2166:
2161:
2152:
2151:
2142:
2141:
2139:
2104:
2103:
2090:
2066:
2065:
2050:
2049:
2046:
2037:
2036:
2027:
2026:
2024:
1985:
1980:
1978:
1969:
1968:
1966:
1950:
1944:
1943:
1931:
1930:
1928:
1901:
1900:
1894:
1892:
1877:
1876:
1874:
1833:
1832:
1817:
1816:
1813:
1804:
1803:
1794:
1793:
1791:
1737:
1736:
1626:
1625:
1622:
1614:
1612:
1592:
1585:
1583:
1572:{\displaystyle {\mathit {C}}F=cashflow\,}
1568:
1532:
1531:
1529:
1492:
1491:
1468:
1457:
1447:
1437:
1436:
1433:
1424:
1423:
1421:
1375:
1374:
1351:
1342:
1341:
1323:
1312:
1289:
1288:
1278:
1271:
1270:
1264:
1262:
1226:
1219:
1218:
1212:
1203:
1202:
1190:
1183:
1182:
1176:
1166:
1159:
1158:
1152:
1134:
1132:
1107:
1081:
1060:
1054:
1053:
1044:
1043:
1031:
1030:
1021:
1020:
1011:
1010:
1001:
1000:
988:
987:
983:
974:
973:
961:
960:
948:
947:
935:
934:
922:
921:
909:
908:
906:
874:
822:
821:
813:
812:
797:
796:
793:
783:
778:
776:
765:
736:
735:
729:
727:
715:
714:
712:
685:
684:
678:
676:
661:
660:
658:
636:
623:
622:
619:
609:
596:
595:
592:
590:
545:
533:
532:
517:
516:
507:
506:
491:
490:
488:
449:
448:
446:
423:
402:
401:
399:
367:
357:
352:
350:
341:
340:
329:
290:
259:
231:
203:
164:
163:
140:
125:
124:
116:
115:
100:
99:
96:
87:
86:
77:
76:
74:
2440:
1923:and we are assuming in this case that
1099:from both sides and then dividing by
441:= price appreciation or decline, and
7:
1471:
1354:
1326:
1267:
1215:
1179:
1155:
1137:
1050:
1040:
1027:
1007:
970:
944:
918:
425:
370:
143:
25:
2820:Electronic communication network
1615:
1458:
2287:
2267:
2098:
2078:
1507:
1390:
1320:
1314:
1257:; moreover, we recognize that
980:
957:
954:
931:
773:
767:
337:
331:
179:
1:
2814:Multilateral trading facility
458:{\displaystyle {\mathit {D}}}
411:{\displaystyle {\mathit {P}}}
3237:Returns-based style analysis
3033:Post-modern portfolio theory
2939:Security characteristic line
1778:Relationship to other models
2991:Efficient-market hypothesis
2895:Capital asset pricing model
2832:Straight-through processing
2409:capital asset pricing model
3364:
2808:Alternative Trading System
2477:Financial Analysts Journal
2132:for ROE, this turns into:
29:
2425:Residual income valuation
2358:and the required return,
418:= beginning stock price,
2872:Arbitrage pricing theory
2430:Clean surplus accounting
1305:, so it turns out that:
895:We can write changes in
434:{\displaystyle \Delta P}
36:Student's t-distribution
3151:Initial public offering
3012:Modern portfolio theory
2907:Dividend discount model
2790:List of stock exchanges
2391:dividend discount model
1115:{\displaystyle \equiv }
1089:{\displaystyle \equiv }
882:{\displaystyle \equiv }
3039:Random walk hypothesis
2348:
2297:
2177:
2120:
1996:
1955:
1917:
1861:
1765:
1597:
1573:
1514:
1397:
1299:
1242:
1116:
1090:
1065:
883:
838:
752:
701:
647:
550:
459:
435:
412:
386:
305:
271:
240:
212:
186:
3177:Market capitalization
2986:Dollar cost averaging
2489:10.2469/faj.v43.n4.34
2354:; it also depends on
2349:
2298:
2178:
2121:
1997:
1956:
1918:
1862:
1766:
1598:
1574:
1515:
1398:
1300:
1243:
1117:
1091:
1066:
884:
839:
753:
702:
648:
551:
460:
436:
413:
387:
306:
272:
241:
213:
187:
2997:Fundamental analysis
2981:Contrarian investing
2944:Security market line
2849:Liquidity aggregator
2826:Direct market access
2737:Quantitative analyst
2317:
2206:
2138:
2023:
1965:
1927:
1873:
1790:
1611:
1582:
1528:
1420:
1311:
1261:
1131:
1106:
1080:
905:
873:
764:
758:this simplifies to:
711:
657:
589:
562:= excess cash flow,
487:
445:
422:
398:
328:
289:
258:
230:
202:
73:
3242:Reverse stock split
3187:Market manipulation
3111:Dual-listed company
2971:Algorithmic trading
2901:Capital market line
2703:Inter-dealer broker
1409:Cash-flow variation
304:{\displaystyle ROE}
3282:Stock market index
3121:Efficient frontier
3060:Technical analysis
3018:Momentum investing
2840:(private exchange)
2730:Proprietary trader
2672:Shares outstanding
2662:Authorised capital
2389:or the simplified
2344:
2293:
2173:
2116:
1992:
1951:
1913:
1857:
1761:
1593:
1590:
1569:
1510:
1393:
1295:
1238:
1112:
1086:
1061:
879:
834:
748:
697:
643:
546:
455:
431:
408:
382:
301:
270:{\displaystyle PB}
267:
236:
208:
182:
3330:
3329:
3131:Flight-to-quality
2883:Buffett indicator
2573:Financial markets
2342:
2291:
2221:
2171:
2114:
1990:
1911:
1843:
1759:
1589:
1489:
1452:
1372:
1336:
1283:
1231:
1195:
1171:
1147:
832:
788:
746:
695:
641:
614:
570:= dividends, and
380:
362:
239:{\displaystyle g}
211:{\displaystyle T}
161:
135:
16:(Redirected from
3355:
3348:Financial models
3247:Share repurchase
2959:Trading theories
2844:Crossing network
2802:Over-the-counter
2639:Restricted stock
2595:Secondary market
2566:
2559:
2552:
2543:
2509:
2506:
2500:
2499:
2472:
2466:
2463:
2457:
2454:
2448:
2445:
2353:
2351:
2350:
2345:
2343:
2338:
2334:
2329:
2328:
2321:
2302:
2300:
2299:
2294:
2292:
2290:
2286:
2285:
2276:
2275:
2260:
2259:
2252:
2251:
2250:
2235:
2234:
2227:
2222:
2220:
2215:
2210:
2182:
2180:
2179:
2174:
2172:
2170:
2162:
2157:
2156:
2147:
2146:
2125:
2123:
2122:
2117:
2115:
2113:
2109:
2108:
2101:
2094:
2071:
2070:
2055:
2054:
2047:
2042:
2041:
2032:
2031:
2017:doesn't change:
2001:
1999:
1998:
1993:
1991:
1989:
1984:
1979:
1974:
1973:
1960:
1958:
1957:
1952:
1949:
1948:
1936:
1935:
1922:
1920:
1919:
1914:
1912:
1910:
1906:
1905:
1898:
1893:
1882:
1881:
1866:
1864:
1863:
1858:
1844:
1839:
1838:
1837:
1822:
1821:
1814:
1809:
1808:
1799:
1798:
1770:
1768:
1767:
1762:
1760:
1758:
1742:
1741:
1734:
1631:
1630:
1623:
1618:
1602:
1600:
1599:
1594:
1591:
1587:
1578:
1576:
1575:
1570:
1537:
1536:
1519:
1517:
1516:
1511:
1497:
1496:
1490:
1488:
1480:
1469:
1461:
1453:
1451:
1446:
1442:
1441:
1434:
1429:
1428:
1402:
1400:
1399:
1394:
1380:
1379:
1373:
1371:
1363:
1352:
1347:
1346:
1337:
1332:
1324:
1304:
1302:
1301:
1296:
1294:
1293:
1284:
1282:
1277:
1276:
1275:
1265:
1247:
1245:
1244:
1239:
1237:
1233:
1232:
1230:
1225:
1224:
1223:
1213:
1208:
1207:
1196:
1194:
1189:
1188:
1187:
1177:
1172:
1170:
1165:
1164:
1163:
1153:
1148:
1143:
1135:
1121:
1119:
1118:
1113:
1095:
1093:
1092:
1087:
1070:
1068:
1067:
1062:
1059:
1058:
1049:
1048:
1036:
1035:
1026:
1025:
1016:
1015:
1006:
1005:
993:
992:
979:
978:
966:
965:
953:
952:
940:
939:
927:
926:
914:
913:
888:
886:
885:
880:
843:
841:
840:
835:
833:
831:
827:
826:
819:
818:
817:
802:
801:
794:
789:
787:
782:
777:
757:
755:
754:
749:
747:
745:
741:
740:
733:
728:
720:
719:
706:
704:
703:
698:
696:
694:
690:
689:
682:
677:
666:
665:
652:
650:
649:
644:
642:
640:
635:
628:
627:
620:
615:
613:
608:
601:
600:
593:
555:
553:
552:
547:
538:
537:
522:
521:
512:
511:
496:
495:
464:
462:
461:
456:
454:
453:
440:
438:
437:
432:
417:
415:
414:
409:
407:
406:
391:
389:
388:
383:
381:
376:
368:
363:
361:
356:
351:
346:
345:
310:
308:
307:
302:
276:
274:
273:
268:
245:
243:
242:
237:
217:
215:
214:
209:
191:
189:
188:
183:
169:
168:
162:
160:
152:
141:
136:
134:
130:
129:
122:
121:
120:
105:
104:
97:
92:
91:
82:
81:
40:Student's t-test
21:
3363:
3362:
3358:
3357:
3356:
3354:
3353:
3352:
3333:
3332:
3331:
3326:
3317:Voting interest
3227:Public offering
3162:Mandatory offer
3136:Government bond
3116:DuPont analysis
3079:
3075:Value investing
3070:Value averaging
3065:Trend following
3050:Style investing
3045:Sector rotation
2960:
2954:
2933:Net asset value
2859:Stock valuation
2853:
2773:
2681:
2648:
2634:Preferred stock
2609:
2575:
2570:
2517:
2515:Further reading
2512:
2507:
2503:
2474:
2473:
2469:
2464:
2460:
2455:
2451:
2446:
2442:
2438:
2421:
2413:expected return
2371:
2322:
2315:
2314:
2253:
2228:
2204:
2203:
2136:
2135:
2102:
2048:
2021:
2020:
1963:
1962:
1925:
1924:
1899:
1871:
1870:
1815:
1788:
1787:
1780:
1735:
1624:
1609:
1608:
1580:
1579:
1526:
1525:
1481:
1470:
1435:
1418:
1417:
1411:
1364:
1353:
1325:
1309:
1308:
1266:
1259:
1258:
1214:
1201:
1197:
1178:
1154:
1136:
1129:
1128:
1104:
1103:
1078:
1077:
903:
902:
871:
870:
820:
795:
762:
761:
734:
709:
708:
683:
655:
654:
621:
594:
587:
586:
485:
484:
443:
442:
420:
419:
396:
395:
369:
326:
325:
320:
287:
286:
256:
255:
228:
227:
200:
199:
153:
142:
123:
98:
71:
70:
64:
56:required return
43:
28:
23:
22:
15:
12:
11:
5:
3361:
3359:
3351:
3350:
3345:
3335:
3334:
3328:
3327:
3325:
3324:
3319:
3314:
3309:
3304:
3299:
3294:
3289:
3284:
3279:
3277:Stock exchange
3274:
3272:Stock dilution
3269:
3264:
3259:
3254:
3249:
3244:
3239:
3234:
3229:
3224:
3219:
3214:
3209:
3204:
3199:
3197:Mean reversion
3194:
3189:
3184:
3179:
3174:
3172:Market anomaly
3169:
3164:
3159:
3154:
3148:
3143:
3138:
3133:
3128:
3123:
3118:
3113:
3108:
3103:
3098:
3093:
3091:Bid–ask spread
3087:
3085:
3081:
3080:
3078:
3077:
3072:
3067:
3062:
3057:
3052:
3047:
3042:
3036:
3030:
3025:
3020:
3015:
3009:
3004:
2999:
2994:
2988:
2983:
2978:
2973:
2967:
2965:
2956:
2955:
2953:
2952:
2947:
2941:
2936:
2930:
2925:
2920:
2918:Earnings yield
2915:
2913:Dividend yield
2910:
2904:
2898:
2892:
2886:
2880:
2875:
2869:
2863:
2861:
2855:
2854:
2852:
2851:
2846:
2841:
2835:
2829:
2823:
2817:
2811:
2805:
2804:(off-exchange)
2799:
2798:
2797:
2792:
2781:
2779:
2778:Trading venues
2775:
2774:
2772:
2771:
2766:
2765:
2764:
2754:
2749:
2744:
2739:
2734:
2733:
2732:
2727:
2717:
2712:
2707:
2706:
2705:
2700:
2689:
2687:
2683:
2682:
2680:
2679:
2677:Treasury stock
2674:
2669:
2664:
2658:
2656:
2650:
2649:
2647:
2646:
2644:Tracking stock
2641:
2636:
2631:
2626:
2620:
2618:
2611:
2610:
2608:
2607:
2602:
2597:
2592:
2590:Primary market
2586:
2584:
2577:
2576:
2571:
2569:
2568:
2561:
2554:
2546:
2540:
2539:
2534:
2529:
2524:
2521:
2516:
2513:
2511:
2510:
2501:
2467:
2458:
2449:
2439:
2437:
2434:
2433:
2432:
2427:
2420:
2417:
2387:price–earnings
2370:
2367:
2341:
2337:
2333:
2327:
2289:
2284:
2279:
2274:
2269:
2266:
2263:
2258:
2249:
2244:
2241:
2238:
2233:
2225:
2219:
2214:
2169:
2165:
2160:
2155:
2150:
2145:
2112:
2107:
2100:
2097:
2093:
2089:
2086:
2083:
2080:
2077:
2074:
2069:
2064:
2061:
2058:
2053:
2045:
2040:
2035:
2030:
1988:
1983:
1977:
1972:
1947:
1942:
1939:
1934:
1909:
1904:
1897:
1891:
1888:
1885:
1880:
1856:
1853:
1850:
1847:
1842:
1836:
1831:
1828:
1825:
1820:
1812:
1807:
1802:
1797:
1779:
1776:
1757:
1754:
1751:
1748:
1745:
1740:
1733:
1730:
1727:
1724:
1721:
1718:
1715:
1712:
1709:
1706:
1703:
1700:
1697:
1694:
1691:
1688:
1685:
1682:
1679:
1676:
1673:
1670:
1667:
1664:
1661:
1658:
1655:
1652:
1649:
1646:
1643:
1640:
1637:
1634:
1629:
1621:
1617:
1567:
1564:
1561:
1558:
1555:
1552:
1549:
1546:
1543:
1540:
1535:
1509:
1506:
1503:
1500:
1495:
1487:
1484:
1479:
1476:
1473:
1467:
1464:
1460:
1456:
1450:
1445:
1440:
1432:
1427:
1410:
1407:
1392:
1389:
1386:
1383:
1378:
1370:
1367:
1362:
1359:
1356:
1350:
1345:
1340:
1335:
1331:
1328:
1322:
1319:
1316:
1292:
1287:
1281:
1274:
1269:
1236:
1229:
1222:
1217:
1211:
1206:
1200:
1193:
1186:
1181:
1175:
1169:
1162:
1157:
1151:
1146:
1142:
1139:
1111:
1085:
1057:
1052:
1047:
1042:
1039:
1034:
1029:
1024:
1019:
1014:
1009:
1004:
999:
996:
991:
986:
982:
977:
972:
969:
964:
959:
956:
951:
946:
943:
938:
933:
930:
925:
920:
917:
912:
878:
830:
825:
816:
811:
808:
805:
800:
792:
786:
781:
775:
772:
769:
744:
739:
732:
726:
723:
718:
693:
688:
681:
675:
672:
669:
664:
639:
634:
631:
626:
618:
612:
607:
604:
599:
544:
541:
536:
531:
528:
525:
520:
515:
510:
505:
502:
499:
494:
452:
430:
427:
405:
379:
375:
372:
366:
360:
355:
349:
344:
339:
336:
333:
319:
316:
315:
314:
313:
312:
300:
297:
294:
281:
280:
279:
278:
266:
263:
250:
249:
248:
247:
235:
222:
221:
220:
219:
207:
193:
192:
181:
178:
175:
172:
167:
159:
156:
151:
148:
145:
139:
133:
128:
119:
114:
111:
108:
103:
95:
90:
85:
80:
63:
60:
26:
24:
14:
13:
10:
9:
6:
4:
3:
2:
3360:
3349:
3346:
3344:
3341:
3340:
3338:
3323:
3320:
3318:
3315:
3313:
3310:
3308:
3305:
3303:
3300:
3298:
3295:
3293:
3290:
3288:
3285:
3283:
3280:
3278:
3275:
3273:
3270:
3268:
3265:
3263:
3260:
3258:
3255:
3253:
3252:Short selling
3250:
3248:
3245:
3243:
3240:
3238:
3235:
3233:
3230:
3228:
3225:
3223:
3220:
3218:
3215:
3213:
3210:
3208:
3205:
3203:
3200:
3198:
3195:
3193:
3190:
3188:
3185:
3183:
3180:
3178:
3175:
3173:
3170:
3168:
3165:
3163:
3160:
3158:
3155:
3152:
3149:
3147:
3144:
3142:
3141:Greenspan put
3139:
3137:
3134:
3132:
3129:
3127:
3126:Financial law
3124:
3122:
3119:
3117:
3114:
3112:
3109:
3107:
3104:
3102:
3101:Cross listing
3099:
3097:
3094:
3092:
3089:
3088:
3086:
3084:Related terms
3082:
3076:
3073:
3071:
3068:
3066:
3063:
3061:
3058:
3056:
3055:Swing trading
3053:
3051:
3048:
3046:
3043:
3040:
3037:
3034:
3031:
3029:
3026:
3024:
3023:Mosaic theory
3021:
3019:
3016:
3013:
3010:
3008:
3007:Market timing
3005:
3003:
3000:
2998:
2995:
2992:
2989:
2987:
2984:
2982:
2979:
2977:
2974:
2972:
2969:
2968:
2966:
2964:
2957:
2951:
2948:
2945:
2942:
2940:
2937:
2934:
2931:
2929:
2926:
2924:
2921:
2919:
2916:
2914:
2911:
2908:
2905:
2902:
2899:
2896:
2893:
2890:
2887:
2884:
2881:
2879:
2876:
2873:
2870:
2868:
2865:
2864:
2862:
2860:
2856:
2850:
2847:
2845:
2842:
2839:
2836:
2833:
2830:
2827:
2824:
2821:
2818:
2815:
2812:
2809:
2806:
2803:
2800:
2796:
2795:Trading hours
2793:
2791:
2788:
2787:
2786:
2783:
2782:
2780:
2776:
2770:
2767:
2763:
2760:
2759:
2758:
2755:
2753:
2750:
2748:
2745:
2743:
2740:
2738:
2735:
2731:
2728:
2726:
2723:
2722:
2721:
2718:
2716:
2713:
2711:
2710:Broker-dealer
2708:
2704:
2701:
2699:
2696:
2695:
2694:
2691:
2690:
2688:
2684:
2678:
2675:
2673:
2670:
2668:
2667:Issued shares
2665:
2663:
2660:
2659:
2657:
2655:
2654:Share capital
2651:
2645:
2642:
2640:
2637:
2635:
2632:
2630:
2627:
2625:
2622:
2621:
2619:
2617:
2612:
2606:
2605:Fourth market
2603:
2601:
2598:
2596:
2593:
2591:
2588:
2587:
2585:
2583:
2578:
2574:
2567:
2562:
2560:
2555:
2553:
2548:
2547:
2544:
2538:
2535:
2533:
2530:
2528:
2525:
2522:
2519:
2518:
2514:
2505:
2502:
2498:
2494:
2490:
2486:
2482:
2478:
2471:
2468:
2462:
2459:
2453:
2450:
2444:
2441:
2435:
2431:
2428:
2426:
2423:
2422:
2418:
2416:
2414:
2410:
2405:
2403:
2399:
2394:
2392:
2388:
2383:
2381:
2376:
2368:
2366:
2363:
2361:
2357:
2339:
2335:
2331:
2312:
2308:
2303:
2277:
2264:
2261:
2242:
2239:
2236:
2223:
2201:
2199:
2194:
2192:
2188:
2183:
2163:
2158:
2148:
2133:
2131:
2128:Substituting
2126:
2110:
2095:
2091:
2087:
2084:
2081:
2075:
2072:
2062:
2059:
2056:
2043:
2033:
2018:
2016:
2012:
2007:
2005:
1975:
1940:
1937:
1907:
1889:
1886:
1883:
1867:
1854:
1851:
1848:
1845:
1840:
1829:
1826:
1823:
1810:
1800:
1785:
1777:
1775:
1771:
1755:
1752:
1749:
1746:
1743:
1731:
1728:
1725:
1722:
1719:
1716:
1713:
1710:
1707:
1704:
1701:
1698:
1695:
1692:
1689:
1686:
1683:
1680:
1677:
1674:
1671:
1668:
1665:
1662:
1659:
1656:
1653:
1650:
1647:
1644:
1641:
1638:
1635:
1632:
1619:
1606:
1603:
1565:
1562:
1559:
1556:
1553:
1550:
1547:
1544:
1541:
1538:
1523:
1520:
1504:
1501:
1498:
1485:
1482:
1477:
1474:
1465:
1462:
1454:
1443:
1430:
1415:
1408:
1406:
1403:
1387:
1384:
1381:
1368:
1365:
1360:
1357:
1348:
1338:
1333:
1329:
1317:
1306:
1285:
1256:
1252:
1248:
1234:
1209:
1198:
1173:
1149:
1144:
1140:
1126:
1124:
1109:
1102:
1098:
1083:
1076:
1071:
1037:
1017:
997:
994:
984:
967:
941:
928:
915:
900:
898:
893:
891:
876:
869:
865:
861:
857:
853:
849:
844:
828:
809:
806:
803:
790:
770:
759:
742:
724:
721:
691:
673:
670:
667:
632:
629:
616:
605:
602:
584:
579:
577:
573:
569:
565:
561:
556:
542:
539:
529:
526:
523:
513:
503:
500:
497:
482:
480:
476:
472:
468:
428:
392:
377:
373:
364:
347:
334:
323:
317:
298:
295:
292:
285:
284:
283:
282:
264:
261:
254:
253:
252:
251:
233:
226:
225:
224:
223:
205:
197:
196:
195:
194:
176:
173:
170:
157:
154:
149:
146:
137:
131:
112:
109:
106:
93:
83:
69:
68:
67:
61:
59:
57:
52:
48:
41:
37:
33:
19:
3302:Tender offer
3222:Public float
3192:Market trend
3182:Market depth
3002:Growth stock
2976:Buy and hold
2949:
2885:(Cap-to-GDP)
2725:Floor trader
2715:Market maker
2698:Floor broker
2686:Participants
2629:Golden share
2624:Common stock
2600:Third market
2504:
2483:(4): 34–43,
2480:
2476:
2470:
2461:
2452:
2443:
2406:
2397:
2395:
2384:
2374:
2372:
2364:
2359:
2355:
2306:
2304:
2202:
2197:
2195:
2190:
2186:
2184:
2134:
2129:
2127:
2019:
2014:
2010:
2008:
2003:
1868:
1783:
1781:
1772:
1607:
1604:
1524:
1521:
1416:
1412:
1404:
1307:
1254:
1250:
1249:
1127:
1122:
1100:
1096:
1074:
1073:Subtracting
1072:
901:
896:
894:
889:
867:
863:
859:
855:
851:
847:
845:
760:
582:
580:
575:
571:
567:
566:= earnings,
563:
559:
557:
483:
478:
474:
470:
466:
393:
324:
321:
65:
50:
44:
32:Ford Model T
3307:Uptick rule
3287:Stock split
3267:Squeeze-out
3262:Speculation
3207:Open outcry
3096:Block trade
3028:Pairs trade
3343:Investment
3337:Categories
3312:Volatility
3292:Stock swap
3212:Order book
2963:strategies
2889:Book value
2757:Arbitrager
2752:Speculator
2380:derivation
2013:. Then if
1125:, we get:
318:Derivation
2928:Fed model
2923:EV/EBITDA
2838:Dark pool
2769:Regulator
2614:Types of
2580:Types of
2311:PEG ratio
2278:−
2243:−
2085:−
2063:−
1830:−
1648:−
1616:Φ
1472:Δ
1459:Φ
1355:Δ
1327:Δ
1268:Δ
1216:Δ
1180:Δ
1156:Δ
1138:Δ
1110:≡
1084:≡
1051:Δ
1041:Δ
1028:Δ
1008:Δ
971:Δ
945:Δ
919:Δ
877:≡
810:−
530:−
514:−
426:Δ
371:Δ
144:Δ
113:−
3257:Slippage
3217:Position
3202:Momentum
3106:Dividend
2785:Exchange
2742:Investor
2419:See also
653:. Since
3146:Haircut
2950:T-model
2762:Scalper
2582:markets
2497:4479045
2402:version
2375:ex post
2011:1 – D/E
866:. Then
62:Formula
54:into a
51:T-model
47:finance
18:T-Model
3167:Margin
3035:(PMPT)
2897:(CAPM)
2747:Hedger
2720:Trader
2693:Broker
2616:stocks
2495:
1869:Since
1784:PB = 1
1522:where
558:where
394:Where
198:where
3322:Yield
3297:Trade
3232:Rally
3153:(IPO)
3041:(RMH)
3014:(MPT)
2993:(EMH)
2946:(SML)
2935:(NAV)
2909:(DDM)
2903:(CML)
2874:(APT)
2867:Alpha
2834:(STP)
2828:(DMA)
2822:(ECN)
2816:(MTF)
2810:(ATS)
2493:JSTOR
2436:Notes
2373:When
862:with
854:with
49:, the
3157:Long
2961:and
2891:(BV)
2878:Beta
2130:E/BV
1605:and
899:as:
858:and
707:and
38:and
2485:doi
2398:ROE
2369:Use
2356:ROE
2307:P–E
2196:If
2189:if
2004:ROE
1253:is
583:XCF
576:XCF
568:Div
560:XCF
479:gBV
45:In
3339::
2491:,
2481:43
2479:,
2362:.
2313:"
2198:PB
2191:PB
2015:PB
2006:.
1961:,
1255:PB
1123:AB
1097:AB
892:.
890:AB
860:BV
852:PB
848:PB
572:BV
2565:e
2558:t
2551:v
2487::
2360:T
2340:g
2336:E
2332:/
2326:P
2288:)
2283:g
2273:T
2268:(
2265:E
2262:O
2257:R
2248:g
2240:E
2237:O
2232:R
2224:=
2218:E
2213:P
2187:T
2168:P
2164:D
2159:+
2154:g
2149:=
2144:T
2111:B
2106:P
2099:)
2096:E
2092:/
2088:D
2082:1
2079:(
2076:E
2073:O
2068:R
2060:E
2057:O
2052:R
2044:+
2039:g
2034:=
2029:T
1987:P
1982:E
1976:=
1971:T
1946:P
1941:=
1938:V
1933:B
1908:V
1903:B
1896:E
1890:=
1887:E
1884:O
1879:R
1855:E
1852:O
1849:R
1846:=
1841:1
1835:g
1827:E
1824:O
1819:R
1811:+
1806:g
1801:=
1796:T
1756:p
1753:a
1750:C
1747:t
1744:k
1739:M
1732:s
1729:e
1726:i
1723:t
1720:i
1717:l
1714:i
1711:b
1708:a
1705:i
1702:l
1699:l
1696:a
1693:t
1690:o
1687:t
1684:+
1681:s
1678:t
1675:e
1672:s
1669:s
1666:a
1663:s
1660:s
1657:o
1654:r
1651:g
1645:p
1642:a
1639:C
1636:t
1633:k
1628:M
1620:=
1566:w
1563:o
1560:l
1557:f
1554:h
1551:s
1548:a
1545:c
1542:=
1539:F
1534:C
1508:)
1505:g
1502:+
1499:1
1494:(
1486:B
1483:P
1478:B
1475:P
1466:+
1463:g
1455:+
1449:P
1444:F
1439:C
1431:=
1426:T
1391:)
1388:g
1385:+
1382:1
1377:(
1369:B
1366:P
1361:B
1358:P
1349:+
1344:g
1339:=
1334:P
1330:P
1321:)
1318:4
1315:(
1291:g
1286:=
1280:B
1273:B
1251:A
1235:)
1228:B
1221:B
1210:+
1205:1
1199:(
1192:A
1185:A
1174:+
1168:B
1161:B
1150:=
1145:P
1141:P
1101:P
1075:P
1056:B
1046:A
1038:+
1033:B
1023:A
1018:+
1013:A
1003:B
998:+
995:B
990:A
985:=
981:)
976:B
968:+
963:B
958:(
955:)
950:A
942:+
937:A
932:(
929:=
924:P
916:+
911:P
897:P
868:P
864:B
856:A
829:B
824:P
815:g
807:E
804:O
799:R
791:=
785:P
780:D
774:)
771:3
768:(
743:V
738:B
731:P
725:=
722:B
717:P
692:V
687:B
680:E
674:=
671:E
668:O
663:R
638:P
633:F
630:C
625:X
617:+
611:P
606:v
603:i
598:D
564:E
543:V
540:B
535:g
527:v
524:i
519:D
509:E
504:=
501:F
498:C
493:X
475:g
471:g
467:g
451:D
429:P
404:P
378:P
374:P
365:+
359:P
354:D
348:=
343:T
338:)
335:2
332:(
299:E
296:O
293:R
265:B
262:P
234:g
206:T
180:)
177:g
174:+
171:1
166:(
158:B
155:P
150:B
147:P
138:+
132:B
127:P
118:g
110:E
107:O
102:R
94:+
89:g
84:=
79:T
42:.
20:)
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