|
|
Factor-using |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Factor-usingBiased in favor of using more of a particular factor.Similar MatchesOld line factoringOld line factoringFactoring arrangement that provides collection, insurance, and finance for Factoring. Factor accumulationFactor accumulationAn increase in the quantity of a factor, usually capital or sometimes human capital. Price earnings growth factorPrice earnings growth factorThe PEG of a company is calculated by dividing its prospective P/E ratio by the estimated future growth rate in earnings per share of the company. So to calculate a PEG, you first need to calculate its P/E ratio.P/E = current share price divided by earnings per shareA company with a share price of 100p and earnings per share of 5p has a P/E ratio of 100/5 = 20.By itself the P/E ratio is a useful ratio because it shows how many times the current earnings the shares cost - in a sense, how many years you would have to wait to get your money back if the company paid out all its earnings to shareholders. But the limitation of the P/E ratio is that it looks at historical information and does not relate the price of the shares to its future performance. The PEG ratio builds in that extra layer of sophistication.Using the example of the same company, imagine that the consensus brokers' forecast for its future earnings growth rate is 15%.PEG = P/E divided by estimated future growth rateFor this company, the PEG would be 20 divided by 15 = 1.33.According to Jim Slater, the investor who popularised the use of PEG's as a stock share selection tool, a share with a PEG of 1 or lower is attractive. Put simply, the lower the PEG, the less you are being asked to pay for estimated future earnings. Jim Slater did not recommend use of the PEG as the only criteria of share selection. There are plenty of other fundamental checks that have to be made too.Note that the estimated future earnings are a critical part of the PEG calculation, and that if the forecasts made by brokers are wide of the mark, the PEG ratio will be unreliable. Because of this danger, most advocated of PEG's recommend using consensus forecasts, rather than the forecasts of any single broker/analyst. Factor Price Equalization TheoremFactor Price Equalization TheoremOne of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone. Factor shareFactor shareThe fraction of payments to value added in an industry that goes to a particular primary factor. Further SuggestionsFactorCurrency factor Primary factor Net benefit to leverage factor Factor market Factor portfolio Pool factor Footloose factor V Vacancy Factor Direct-plus-indirect factor content Factor space International factor movement Factor content pattern of trade Factor price equalization Reported factor Risk factor Factor intensity uniformity Scarce factor Amortization factor Factor movement One factor APT Factor price frontier Factor intensity Factor proportions Factor-saving |
|
|
|