|
|
Earnings price ratio |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Earnings price ratioSee: Earnings yieldEarnings price ratio Similar MatchesEarnings momentumEarnings momentumAn increase in the earnings per share growth rate from one reporting period to the next. Band earningsBand earningsPay between the lower earnings limit and upper earnings limit which is used to determine National Insurance Contributions. Taxable earningsTaxable earningsThe amount of an individual's annual income on which tax is payable defined as:Taxable earnings = Income - Reliefs - AllowancesThe main reliefs are pension contributions and donations to charity. The main allowances are the 'personal allowance' which every individual has (£4,615 for people under 65 in 2003-2004) and the Married Couples Allowance for couples where one spouse is 65 or over.So someone with Income of £20,000 who has made pension contributions in the year of £1,000 will have Total Income of £19,000, and his Taxable Income will be £19,000 less a personal allowance of £4,615 = £14,385.The amount of tax he has to pay will be determined by the tax bands in operation in the year in question. For 2003-2004, the bands are:£1-£1,960: tax rate is 10% (starting rate) - tax on band is £196£1,961-£30,500: tax rate is 22% (basic rate) - tax on band is £6,278.58Over £30,500: tax rate is 40% (higher rate) Earnings before interest, taxes, depreciation, and amortization (EBITDA)Earnings before interest, taxes, depreciation, and amortization (EBITDA)A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation and amortization expenses are not included in the costs. Earnings yieldEarnings yieldThe earnings of a company are its annual profits after deduction of tax, dividends to preference shareholders and bondholders. They are usually expressed on a per-share basis (e.g. 7p), and the earnings per share (EPS) figure is calculated by dividing total earnings by the average number of shares in issue for the relevant accounting period.e.g. earnings or £2m, with 10m shares in issue would give an EPS of 20pThe earnings yield is the EPS as a percentage of the current market price of the share. So if the EPS was 7p and the current market price is 116p, the earnings yield7 / 116 x 100 = 6.03%Earnings yield is not used as commonly as its reciprocal measure, the P/E ratio. On the same figures, the P/E would be:116 / 7 = 16.6 Further Suggestionsnormalised earningsFully diluted earnings per shares Accounting earnings lower earnings limit net relevant earnings retained earnings earnings earnings factor Earnings before interest after taxes (EBIAT) Retained earnings Primary earnings per (common) share State Earnings Related Pension Scheme Earnings before taxes (EBT) Pretax earnings or profits Earnings response coefficient price earnings growth factor adjusted earnings Earnings price earnings ratio (P/E ratio) Quality of earnings Normalized earnings Earnings yield Earnings before interest and, taxes (EBIT) earnings cap Earnings |
|
|
|