1058:
1235:
893:
42:
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
1762:
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
179:
2290:
1507:
1119:
1402:
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:
1758:
831:
2113:
1053:{\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}}\,}
1390:
2366:
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
640:
1854:
379:
1590:
1991:, 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
543:
1292:
1910:
694:
2170:
745:
61:
1989:
2194:
1408:
1230:{\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)}
1763:
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.
1948:
2382:: 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.
2341:
574:, 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
1599:
1566:
752:
2011:
1771:
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 (
452:
405:
428:
1109:
1083:
876:
1299:
2400:
and its various descendants; fundamental models attempt to forecast return from a company's expected future financial performance, whereas CAPM-type models regard
2385:
Some of the practical difficulties involved with financial forecasts stem from the many vicissitudes possible in the calculation of earnings, the numerator in the
577:
298:
454:= 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
264:
1778:
233:
205:
2552:
316:
1570:
1998:
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
2497:
Dwyer, Hubert and
Richard Lynn, "Is The Estep T-Model Consistently Useful?" Financial Analysts Journal, November/December 1992, Vol. 48, No. 6: 82–86.
475:
1249:
563:= book value. The company may have money left over after paying dividends and financing growth, or it may have a shortfall. In other words,
174:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {{\mathit {R}}OE-{\mathit {g}}}{{\mathit {P}}B}}+{\frac {\Delta PB}{PB}}{\mathit {(}}1+g)}
1861:
645:
2512:
Erzegovesi, Luca, "Come impostare la previsione dei rendimenti azionari: il T-model," Economia & Management 1988, v. 2, p. 93–104
2126:
699:
2285:{\displaystyle {\frac {\mathit {P}}{\mathit {E}}}={\frac {{\mathit {R}}OE-{\mathit {g}}}{{\mathit {R}}OE({\mathit {T}}-{\mathit {g}})}}}
2545:
2436:
Estep, Preston W., "A New Method For
Valuing Common Stocks", Financial Analysts Journal, November/December 1985, Vol. 41, No. 6: 26–27
1953:
2526:
Yamaguchi, Katsunari "Supply-side
Estimate of Expected Equity Return on Industrial Japan", Security Analysts Journal, September 2005
1775:) at the beginning and end of the holding period. The third term of the T-Model becomes zero, and the remaining terms simplify to:
1502:{\displaystyle {\mathit {T}}={\frac {{\mathit {C}}F}{\mathit {P}}}+{\boldsymbol {\Phi }}g+{\frac {\Delta PB}{PB}}{\mathit {(}}1+g)}
2516:
Estep, Tony, "Cash Flows, Asset Values, and
Investment Returns: Brief Summary", Banc of America Capital Management, March 2003
2538:
458:. The company funds its growth by investing in plant and equipment and working capital so that its asset base also grows at
2783:
2509:
Asikoglu, Yaman and Metin R. Ercan, "Inflation Flow-Through and Stock Prices," Journal of
Portfolio Management, Spring 1992
2464:
Estep, Tony (July 1987), "Security
Analysis And Stock Selection: Turning Financial Information Into Return Forecasts",
2445:
Estep, Preston, "Cash Flows, Asset Values, and
Investment Returns", The Journal of Portfolio Management, Spring 2003
1915:
2808:
1753:{\displaystyle {\boldsymbol {\Phi }}={\frac {{\mathit {M}}ktCap-grossassets+totalliabilities}{{\mathit {M}}ktCap}}}
2305:
567:
may be positive (company has money with which it can repurchase shares) or negative (company must issue shares).
1516:
2802:
826:{\displaystyle (3){\frac {\mathit {D}}{\mathit {P}}}={\frac {{\mathit {R}}OE-{\mathit {g}}}{{\mathit {P}}B}}}
2108:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {{\mathit {R}}OE-{\mathit {R}}OE(1-D/E)}{{\mathit {P}}B}}}
3285:
3225:
3021:
2927:
2525:
3011:
2979:
2883:
2837:
2820:
2773:
2397:
24:
2796:
2790:
3336:
2454:
Wilcox, Jarrod W., "The P/B-ROE Valuation Model," Financial
Analysts Journal, Jan–Feb 1984, pp 58–66.
2413:
3185:
2860:
2418:
433:
386:
3139:
3000:
2895:
2778:
2401:
2379:
44:
3027:
1385:{\displaystyle (4){\frac {\Delta P}{P}}={\mathit {g}}+{\frac {\Delta PB}{PB}}{\mathit {(}}1+g)}
835:
Now we need a way to write the other portion of return, that due to price change, in terms of
410:
207:= total return from the stock over a period (appreciation + "distribution yield" — see below);
3165:
2974:
1094:
1068:
861:
635:{\displaystyle {\frac {{\mathit {D}}iv}{\mathit {P}}}+{\frac {{\mathit {X}}CF}{\mathit {P}}}}
3300:
3220:
2985:
2969:
2932:
2814:
2757:
2725:
1849:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {{\mathit {R}}OE-{\mathit {g}}}{1}}=ROE}
8:
3331:
3230:
3175:
3099:
2959:
2889:
2718:
2691:
2371:); however, this by no means guarantees that it will be a successful stock-picking tool.
374:{\displaystyle (2){\mathit {T}}={\frac {\mathit {D}}{\mathit {P}}}+{\frac {\Delta P}{P}}}
277:
28:
2174:
This is the standard Gordon "yield plus growth" model. It will be a correct estimate of
246:
3270:
3245:
3205:
3190:
3109:
3079:
3048:
3006:
2750:
2660:
2650:
2481:
2390:
2375:
218:
190:
2396:
Note that all "fundamental valuation methods" differ from economic models such as the
3134:
3119:
2871:
2521:
Wilcox, Jarrod and
Philips, Thomas K., "The P/B-ROE Model Revisited" (March 10, 2004)
2393:
of the T-Model driven by cash items: cash flow, gross assets, and total liabilities.
2374:
Still, it has advantages over commonly used fundamental valuation techniques such as
1585:{\displaystyle {\mbox{(net income + depreciation + all other non-cash charges),}}\,}
3235:
3155:
2951:
2832:
2708:
2627:
2583:
2561:
2473:
2389:
term. With an eye toward making forecasting more robust, in 2003 Estep published a
2404:
as the sum of a risk-free rate plus a premium for exposure to return variability.
3310:
3305:
3240:
3215:
3150:
3124:
3104:
3063:
3058:
3053:
3038:
3033:
2921:
2855:
2847:
2735:
2622:
3265:
3260:
3160:
3145:
2906:
2901:
2866:
2665:
2632:
2578:
2570:
538:{\displaystyle {\mathit {X}}CF={\mathit {E}}-{\mathit {D}}iv-{\mathit {g}}BV\,}
300:= the company's return on equity, i.e. earnings during the period / book value;
3325:
3129:
3114:
3089:
3043:
2995:
2698:
2655:
2642:
2593:
2515:
2298:
cannot be related to growth by a simple rule of thumb such as the so-called "
2368:
3290:
3210:
3180:
3170:
2990:
2964:
2713:
2703:
2686:
2617:
2612:
2588:
20:
2477:
3295:
3275:
3255:
3250:
3195:
3084:
3016:
1287:{\displaystyle {\frac {\Delta {\mathit {B}}}{\mathit {B}}}={\mathit {g}}}
466:. Then the amount of earnings retained for reinvestment will have to be
3280:
3200:
2877:
2740:
2485:
2916:
2911:
2826:
2745:
2299:
1905:{\displaystyle {\mathit {R}}OE={\frac {\mathit {E}}{{\mathit {B}}V}}}
689:{\displaystyle {\mathit {R}}OE={\frac {\mathit {E}}{{\mathit {B}}V}}}
462:, and debt/equity ratio is held constant, so that net worth grows at
2530:
2165:{\displaystyle {\mathit {T}}={\mathit {g}}+{\frac {D}{\mathit {P}}}}
740:{\displaystyle {\mathit {P}}B={\frac {\mathit {P}}{{\mathit {B}}V}}}
570:
Assume that the company buys or sells shares in accordance with its
3094:
2730:
2354:
The T-model is also closely related to the P/B-ROE model of Wilcox
2520:
2189:
is constant, the familiar price–earnings ratio can be written as:
266:= the ratio of price / book value at the beginning of the period.
35:
23:. For the distribution model similar to Normal distribution, see
2182:
does not change and the company grows at its reinvestment rate.
1984:{\displaystyle {\mathit {T}}={\frac {\mathit {E}}{\mathit {P}}}}
235:= the growth rate of the company's book value during the period;
2681:
2604:
1394:
Substituting (3) and (4) into (2) gives (1), the T-Model.
311:
The return a shareholder receives from owning a stock is:
1577:(net income + depreciation + all other non-cash charges),
1575:
2308:
2294:
From this relationship we recognize immediately that
2197:
2129:
2014:
1956:
1918:
1864:
1781:
1602:
1573:
1519:
1411:
1302:
1252:
1122:
1097:
1071:
896:
864:
755:
702:
648:
580:
478:
436:
413:
389:
319:
280:
249:
221:
193:
64:
1482:
1365:
154:
2335:
2284:
2164:
2107:
1983:
1942:
1904:
1848:
1752:
1584:
1560:
1501:
1384:
1286:
1229:
1103:
1077:
1052:
870:
825:
739:
688:
634:
537:
470:. After paying dividends, there may be an excess:
446:
422:
399:
373:
292:
258:
227:
199:
173:
19:"T model" redirects here. For the automobile, see
3323:
1766:
1943:{\displaystyle {\mathit {B}}V={\mathit {P}}\,}
839:. For notational clarity, temporarily replace
2546:
2336:{\displaystyle {\frac {{\mathit {P}}/E}{g}}}
16:Connects fundamentals with investment return
2553:
2539:
55:Mathematically the T-model is as follows:
47:that can be used in investment selection.
1939:
1581:
1561:{\displaystyle {\mathit {C}}F=cashflow\,}
1557:
1049:
972:
534:
3324:
1912:and we are assuming in this case that
1397:
2560:
2534:
2463:
1088:from both sides and then dividing by
430:= price appreciation or decline, and
13:
2503:
2314:
2271:
2261:
2245:
2236:
2220:
2206:
2201:
2156:
2142:
2132:
2094:
2056:
2040:
2027:
2017:
1975:
1970:
1959:
1934:
1921:
1891:
1884:
1867:
1823:
1807:
1794:
1784:
1727:
1616:
1522:
1460:
1437:
1427:
1414:
1343:
1332:
1315:
1279:
1268:
1261:
1256:
1216:
1209:
1204:
1193:
1180:
1173:
1168:
1156:
1149:
1144:
1126:
1044:
1039:
1034:
1029:
1021:
1016:
1011:
1001:
996:
991:
978:
964:
959:
951:
938:
933:
925:
912:
907:
899:
812:
803:
787:
773:
768:
726:
719:
705:
675:
668:
651:
626:
613:
599:
586:
523:
507:
497:
481:
439:
414:
392:
359:
347:
342:
331:
132:
115:
106:
90:
77:
67:
14:
3348:
2809:Electronic communication network
1604:
1447:
2491:
2457:
2448:
2439:
2430:
2276:
2256:
2087:
2067:
1496:
1379:
1309:
1303:
1246:; moreover, we recognize that
969:
946:
943:
920:
762:
756:
326:
320:
168:
1:
2803:Multilateral trading facility
447:{\displaystyle {\mathit {D}}}
400:{\displaystyle {\mathit {P}}}
306:
3226:Returns-based style analysis
3022:Post-modern portfolio theory
2928:Security characteristic line
1767:Relationship to other models
7:
2980:Efficient-market hypothesis
2884:Capital asset pricing model
2821:Straight-through processing
2407:
2398:capital asset pricing model
10:
3353:
2797:Alternative Trading System
2466:Financial Analysts Journal
2121:for ROE, this turns into:
50:
18:
3072:
2947:
2846:
2766:
2674:
2641:
2602:
2568:
2414:Residual income valuation
2347:and the required return,
407:= beginning stock price,
2861:Arbitrage pricing theory
2424:
2419:Clean surplus accounting
1294:, so it turns out that:
884:We can write changes in
423:{\displaystyle \Delta P}
25:Student's t-distribution
3140:Initial public offering
3001:Modern portfolio theory
2896:Dividend discount model
2779:List of stock exchanges
2380:dividend discount model
1104:{\displaystyle \equiv }
1078:{\displaystyle \equiv }
871:{\displaystyle \equiv }
3028:Random walk hypothesis
2357:
2337:
2286:
2166:
2109:
1985:
1944:
1906:
1850:
1754:
1586:
1562:
1503:
1386:
1288:
1231:
1105:
1079:
1054:
872:
827:
741:
690:
636:
539:
448:
424:
401:
375:
294:
260:
229:
201:
175:
3166:Market capitalization
2975:Dollar cost averaging
2478:10.2469/faj.v43.n4.34
2343:; it also depends on
2338:
2287:
2167:
2110:
1986:
1945:
1907:
1851:
1755:
1587:
1563:
1504:
1387:
1289:
1232:
1106:
1080:
1055:
873:
828:
742:
691:
637:
540:
449:
425:
402:
376:
295:
261:
230:
202:
176:
2986:Fundamental analysis
2970:Contrarian investing
2933:Security market line
2838:Liquidity aggregator
2815:Direct market access
2726:Quantitative analyst
2306:
2195:
2127:
2012:
1954:
1916:
1862:
1779:
1600:
1571:
1517:
1409:
1300:
1250:
1120:
1095:
1069:
894:
862:
753:
747:this simplifies to:
700:
646:
578:
551:= excess cash flow,
476:
434:
411:
387:
317:
278:
247:
219:
191:
62:
3231:Reverse stock split
3176:Market manipulation
3100:Dual-listed company
2960:Algorithmic trading
2890:Capital market line
2692:Inter-dealer broker
1398:Cash-flow variation
293:{\displaystyle ROE}
3271:Stock market index
3110:Efficient frontier
3049:Technical analysis
3007:Momentum investing
2829:(private exchange)
2719:Proprietary trader
2661:Shares outstanding
2651:Authorised capital
2378:or the simplified
2333:
2282:
2162:
2105:
1981:
1940:
1902:
1846:
1750:
1582:
1579:
1558:
1499:
1382:
1284:
1227:
1101:
1075:
1050:
868:
823:
737:
686:
632:
535:
444:
420:
397:
371:
290:
259:{\displaystyle PB}
256:
225:
197:
171:
3319:
3318:
3120:Flight-to-quality
2872:Buffett indicator
2562:Financial markets
2331:
2280:
2210:
2160:
2103:
1979:
1900:
1832:
1748:
1578:
1478:
1441:
1361:
1325:
1272:
1220:
1184:
1160:
1136:
821:
777:
735:
684:
630:
603:
559:= dividends, and
369:
351:
228:{\displaystyle g}
200:{\displaystyle T}
150:
124:
3344:
3337:Financial models
3236:Share repurchase
2948:Trading theories
2833:Crossing network
2791:Over-the-counter
2628:Restricted stock
2584:Secondary market
2555:
2548:
2541:
2532:
2531:
2498:
2495:
2489:
2488:
2461:
2455:
2452:
2446:
2443:
2437:
2434:
2342:
2340:
2339:
2334:
2332:
2327:
2323:
2318:
2317:
2310:
2291:
2289:
2288:
2283:
2281:
2279:
2275:
2274:
2265:
2264:
2249:
2248:
2241:
2240:
2239:
2224:
2223:
2216:
2211:
2209:
2204:
2199:
2171:
2169:
2168:
2163:
2161:
2159:
2151:
2146:
2145:
2136:
2135:
2114:
2112:
2111:
2106:
2104:
2102:
2098:
2097:
2090:
2083:
2060:
2059:
2044:
2043:
2036:
2031:
2030:
2021:
2020:
2006:doesn't change:
1990:
1988:
1987:
1982:
1980:
1978:
1973:
1968:
1963:
1962:
1949:
1947:
1946:
1941:
1938:
1937:
1925:
1924:
1911:
1909:
1908:
1903:
1901:
1899:
1895:
1894:
1887:
1882:
1871:
1870:
1855:
1853:
1852:
1847:
1833:
1828:
1827:
1826:
1811:
1810:
1803:
1798:
1797:
1788:
1787:
1759:
1757:
1756:
1751:
1749:
1747:
1731:
1730:
1723:
1620:
1619:
1612:
1607:
1591:
1589:
1588:
1583:
1580:
1576:
1567:
1565:
1564:
1559:
1526:
1525:
1508:
1506:
1505:
1500:
1486:
1485:
1479:
1477:
1469:
1458:
1450:
1442:
1440:
1435:
1431:
1430:
1423:
1418:
1417:
1391:
1389:
1388:
1383:
1369:
1368:
1362:
1360:
1352:
1341:
1336:
1335:
1326:
1321:
1313:
1293:
1291:
1290:
1285:
1283:
1282:
1273:
1271:
1266:
1265:
1264:
1254:
1236:
1234:
1233:
1228:
1226:
1222:
1221:
1219:
1214:
1213:
1212:
1202:
1197:
1196:
1185:
1183:
1178:
1177:
1176:
1166:
1161:
1159:
1154:
1153:
1152:
1142:
1137:
1132:
1124:
1110:
1108:
1107:
1102:
1084:
1082:
1081:
1076:
1059:
1057:
1056:
1051:
1048:
1047:
1038:
1037:
1025:
1024:
1015:
1014:
1005:
1004:
995:
994:
982:
981:
968:
967:
955:
954:
942:
941:
929:
928:
916:
915:
903:
902:
877:
875:
874:
869:
832:
830:
829:
824:
822:
820:
816:
815:
808:
807:
806:
791:
790:
783:
778:
776:
771:
766:
746:
744:
743:
738:
736:
734:
730:
729:
722:
717:
709:
708:
695:
693:
692:
687:
685:
683:
679:
678:
671:
666:
655:
654:
641:
639:
638:
633:
631:
629:
624:
617:
616:
609:
604:
602:
597:
590:
589:
582:
544:
542:
541:
536:
527:
526:
511:
510:
501:
500:
485:
484:
453:
451:
450:
445:
443:
442:
429:
427:
426:
421:
406:
404:
403:
398:
396:
395:
380:
378:
377:
372:
370:
365:
357:
352:
350:
345:
340:
335:
334:
299:
297:
296:
291:
265:
263:
262:
257:
234:
232:
231:
226:
206:
204:
203:
198:
180:
178:
177:
172:
158:
157:
151:
149:
141:
130:
125:
123:
119:
118:
111:
110:
109:
94:
93:
86:
81:
80:
71:
70:
29:Student's t-test
3352:
3351:
3347:
3346:
3345:
3343:
3342:
3341:
3322:
3321:
3320:
3315:
3306:Voting interest
3216:Public offering
3151:Mandatory offer
3125:Government bond
3105:DuPont analysis
3068:
3064:Value investing
3059:Value averaging
3054:Trend following
3039:Style investing
3034:Sector rotation
2949:
2943:
2922:Net asset value
2848:Stock valuation
2842:
2762:
2670:
2637:
2623:Preferred stock
2598:
2564:
2559:
2506:
2504:Further reading
2501:
2496:
2492:
2462:
2458:
2453:
2449:
2444:
2440:
2435:
2431:
2427:
2410:
2402:expected return
2360:
2319:
2313:
2312:
2311:
2309:
2307:
2304:
2303:
2270:
2269:
2260:
2259:
2244:
2243:
2242:
2235:
2234:
2219:
2218:
2217:
2215:
2205:
2200:
2198:
2196:
2193:
2192:
2155:
2150:
2141:
2140:
2131:
2130:
2128:
2125:
2124:
2093:
2092:
2091:
2079:
2055:
2054:
2039:
2038:
2037:
2035:
2026:
2025:
2016:
2015:
2013:
2010:
2009:
1974:
1969:
1967:
1958:
1957:
1955:
1952:
1951:
1933:
1932:
1920:
1919:
1917:
1914:
1913:
1890:
1889:
1888:
1883:
1881:
1866:
1865:
1863:
1860:
1859:
1822:
1821:
1806:
1805:
1804:
1802:
1793:
1792:
1783:
1782:
1780:
1777:
1776:
1769:
1726:
1725:
1724:
1615:
1614:
1613:
1611:
1603:
1601:
1598:
1597:
1574:
1572:
1569:
1568:
1521:
1520:
1518:
1515:
1514:
1481:
1480:
1470:
1459:
1457:
1446:
1436:
1426:
1425:
1424:
1422:
1413:
1412:
1410:
1407:
1406:
1400:
1364:
1363:
1353:
1342:
1340:
1331:
1330:
1314:
1312:
1301:
1298:
1297:
1278:
1277:
1267:
1260:
1259:
1255:
1253:
1251:
1248:
1247:
1215:
1208:
1207:
1203:
1201:
1192:
1191:
1190:
1186:
1179:
1172:
1171:
1167:
1165:
1155:
1148:
1147:
1143:
1141:
1125:
1123:
1121:
1118:
1117:
1096:
1093:
1092:
1070:
1067:
1066:
1043:
1042:
1033:
1032:
1020:
1019:
1010:
1009:
1000:
999:
990:
989:
977:
976:
963:
962:
950:
949:
937:
936:
924:
923:
911:
910:
898:
897:
895:
892:
891:
863:
860:
859:
811:
810:
809:
802:
801:
786:
785:
784:
782:
772:
767:
765:
754:
751:
750:
725:
724:
723:
718:
716:
704:
703:
701:
698:
697:
674:
673:
672:
667:
665:
650:
649:
647:
644:
643:
625:
612:
611:
610:
608:
598:
585:
584:
583:
581:
579:
576:
575:
522:
521:
506:
505:
496:
495:
480:
479:
477:
474:
473:
438:
437:
435:
432:
431:
412:
409:
408:
391:
390:
388:
385:
384:
358:
356:
346:
341:
339:
330:
329:
318:
315:
314:
309:
279:
276:
275:
248:
245:
244:
220:
217:
216:
192:
189:
188:
153:
152:
142:
131:
129:
114:
113:
112:
105:
104:
89:
88:
87:
85:
76:
75:
66:
65:
63:
60:
59:
53:
45:required return
32:
17:
12:
11:
5:
3350:
3340:
3339:
3334:
3317:
3316:
3314:
3313:
3308:
3303:
3298:
3293:
3288:
3283:
3278:
3273:
3268:
3266:Stock exchange
3263:
3261:Stock dilution
3258:
3253:
3248:
3243:
3238:
3233:
3228:
3223:
3218:
3213:
3208:
3203:
3198:
3193:
3188:
3186:Mean reversion
3183:
3178:
3173:
3168:
3163:
3161:Market anomaly
3158:
3153:
3148:
3143:
3137:
3132:
3127:
3122:
3117:
3112:
3107:
3102:
3097:
3092:
3087:
3082:
3080:Bid–ask spread
3076:
3074:
3070:
3069:
3067:
3066:
3061:
3056:
3051:
3046:
3041:
3036:
3031:
3025:
3019:
3014:
3009:
3004:
2998:
2993:
2988:
2983:
2977:
2972:
2967:
2962:
2956:
2954:
2945:
2944:
2942:
2941:
2936:
2930:
2925:
2919:
2914:
2909:
2907:Earnings yield
2904:
2902:Dividend yield
2899:
2893:
2887:
2881:
2875:
2869:
2864:
2858:
2852:
2850:
2844:
2843:
2841:
2840:
2835:
2830:
2824:
2818:
2812:
2806:
2800:
2794:
2793:(off-exchange)
2788:
2787:
2786:
2781:
2770:
2768:
2767:Trading venues
2764:
2763:
2761:
2760:
2755:
2754:
2753:
2743:
2738:
2733:
2728:
2723:
2722:
2721:
2716:
2706:
2701:
2696:
2695:
2694:
2689:
2678:
2676:
2672:
2671:
2669:
2668:
2666:Treasury stock
2663:
2658:
2653:
2647:
2645:
2639:
2638:
2636:
2635:
2633:Tracking stock
2630:
2625:
2620:
2615:
2609:
2607:
2600:
2599:
2597:
2596:
2591:
2586:
2581:
2579:Primary market
2575:
2573:
2566:
2565:
2558:
2557:
2550:
2543:
2535:
2529:
2528:
2523:
2518:
2513:
2510:
2505:
2502:
2500:
2499:
2490:
2456:
2447:
2438:
2428:
2426:
2423:
2422:
2421:
2416:
2409:
2406:
2376:price–earnings
2359:
2356:
2330:
2326:
2322:
2316:
2278:
2273:
2268:
2263:
2258:
2255:
2252:
2247:
2238:
2233:
2230:
2227:
2222:
2214:
2208:
2203:
2158:
2154:
2149:
2144:
2139:
2134:
2101:
2096:
2089:
2086:
2082:
2078:
2075:
2072:
2069:
2066:
2063:
2058:
2053:
2050:
2047:
2042:
2034:
2029:
2024:
2019:
1977:
1972:
1966:
1961:
1936:
1931:
1928:
1923:
1898:
1893:
1886:
1880:
1877:
1874:
1869:
1845:
1842:
1839:
1836:
1831:
1825:
1820:
1817:
1814:
1809:
1801:
1796:
1791:
1786:
1768:
1765:
1746:
1743:
1740:
1737:
1734:
1729:
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:
1629:
1626:
1623:
1618:
1610:
1606:
1556:
1553:
1550:
1547:
1544:
1541:
1538:
1535:
1532:
1529:
1524:
1498:
1495:
1492:
1489:
1484:
1476:
1473:
1468:
1465:
1462:
1456:
1453:
1449:
1445:
1439:
1434:
1429:
1421:
1416:
1399:
1396:
1381:
1378:
1375:
1372:
1367:
1359:
1356:
1351:
1348:
1345:
1339:
1334:
1329:
1324:
1320:
1317:
1311:
1308:
1305:
1281:
1276:
1270:
1263:
1258:
1225:
1218:
1211:
1206:
1200:
1195:
1189:
1182:
1175:
1170:
1164:
1158:
1151:
1146:
1140:
1135:
1131:
1128:
1100:
1074:
1046:
1041:
1036:
1031:
1028:
1023:
1018:
1013:
1008:
1003:
998:
993:
988:
985:
980:
975:
971:
966:
961:
958:
953:
948:
945:
940:
935:
932:
927:
922:
919:
914:
909:
906:
901:
867:
819:
814:
805:
800:
797:
794:
789:
781:
775:
770:
764:
761:
758:
733:
728:
721:
715:
712:
707:
682:
677:
670:
664:
661:
658:
653:
628:
623:
620:
615:
607:
601:
596:
593:
588:
533:
530:
525:
520:
517:
514:
509:
504:
499:
494:
491:
488:
483:
441:
419:
416:
394:
368:
364:
361:
355:
349:
344:
338:
333:
328:
325:
322:
308:
305:
304:
303:
302:
301:
289:
286:
283:
270:
269:
268:
267:
255:
252:
239:
238:
237:
236:
224:
211:
210:
209:
208:
196:
182:
181:
170:
167:
164:
161:
156:
148:
145:
140:
137:
134:
128:
122:
117:
108:
103:
100:
97:
92:
84:
79:
74:
69:
52:
49:
15:
9:
6:
4:
3:
2:
3349:
3338:
3335:
3333:
3330:
3329:
3327:
3312:
3309:
3307:
3304:
3302:
3299:
3297:
3294:
3292:
3289:
3287:
3284:
3282:
3279:
3277:
3274:
3272:
3269:
3267:
3264:
3262:
3259:
3257:
3254:
3252:
3249:
3247:
3244:
3242:
3241:Short selling
3239:
3237:
3234:
3232:
3229:
3227:
3224:
3222:
3219:
3217:
3214:
3212:
3209:
3207:
3204:
3202:
3199:
3197:
3194:
3192:
3189:
3187:
3184:
3182:
3179:
3177:
3174:
3172:
3169:
3167:
3164:
3162:
3159:
3157:
3154:
3152:
3149:
3147:
3144:
3141:
3138:
3136:
3133:
3131:
3130:Greenspan put
3128:
3126:
3123:
3121:
3118:
3116:
3115:Financial law
3113:
3111:
3108:
3106:
3103:
3101:
3098:
3096:
3093:
3091:
3090:Cross listing
3088:
3086:
3083:
3081:
3078:
3077:
3075:
3073:Related terms
3071:
3065:
3062:
3060:
3057:
3055:
3052:
3050:
3047:
3045:
3044:Swing trading
3042:
3040:
3037:
3035:
3032:
3029:
3026:
3023:
3020:
3018:
3015:
3013:
3012:Mosaic theory
3010:
3008:
3005:
3002:
2999:
2997:
2996:Market timing
2994:
2992:
2989:
2987:
2984:
2981:
2978:
2976:
2973:
2971:
2968:
2966:
2963:
2961:
2958:
2957:
2955:
2953:
2946:
2940:
2937:
2934:
2931:
2929:
2926:
2923:
2920:
2918:
2915:
2913:
2910:
2908:
2905:
2903:
2900:
2897:
2894:
2891:
2888:
2885:
2882:
2879:
2876:
2873:
2870:
2868:
2865:
2862:
2859:
2857:
2854:
2853:
2851:
2849:
2845:
2839:
2836:
2834:
2831:
2828:
2825:
2822:
2819:
2816:
2813:
2810:
2807:
2804:
2801:
2798:
2795:
2792:
2789:
2785:
2784:Trading hours
2782:
2780:
2777:
2776:
2775:
2772:
2771:
2769:
2765:
2759:
2756:
2752:
2749:
2748:
2747:
2744:
2742:
2739:
2737:
2734:
2732:
2729:
2727:
2724:
2720:
2717:
2715:
2712:
2711:
2710:
2707:
2705:
2702:
2700:
2699:Broker-dealer
2697:
2693:
2690:
2688:
2685:
2684:
2683:
2680:
2679:
2677:
2673:
2667:
2664:
2662:
2659:
2657:
2656:Issued shares
2654:
2652:
2649:
2648:
2646:
2644:
2643:Share capital
2640:
2634:
2631:
2629:
2626:
2624:
2621:
2619:
2616:
2614:
2611:
2610:
2608:
2606:
2601:
2595:
2594:Fourth market
2592:
2590:
2587:
2585:
2582:
2580:
2577:
2576:
2574:
2572:
2567:
2563:
2556:
2551:
2549:
2544:
2542:
2537:
2536:
2533:
2527:
2524:
2522:
2519:
2517:
2514:
2511:
2508:
2507:
2494:
2487:
2483:
2479:
2475:
2471:
2467:
2460:
2451:
2442:
2433:
2429:
2420:
2417:
2415:
2412:
2411:
2405:
2403:
2399:
2394:
2392:
2388:
2383:
2381:
2377:
2372:
2370:
2365:
2355:
2352:
2350:
2346:
2328:
2324:
2320:
2301:
2297:
2292:
2266:
2253:
2250:
2231:
2228:
2225:
2212:
2190:
2188:
2183:
2181:
2177:
2172:
2152:
2147:
2137:
2122:
2120:
2117:Substituting
2115:
2099:
2084:
2080:
2076:
2073:
2070:
2064:
2061:
2051:
2048:
2045:
2032:
2022:
2007:
2005:
2001:
1996:
1994:
1964:
1929:
1926:
1896:
1878:
1875:
1872:
1856:
1843:
1840:
1837:
1834:
1829:
1818:
1815:
1812:
1799:
1789:
1774:
1764:
1760:
1744:
1741:
1738:
1735:
1732:
1720:
1717:
1714:
1711:
1708:
1705:
1702:
1699:
1696:
1693:
1690:
1687:
1684:
1681:
1678:
1675:
1672:
1669:
1666:
1663:
1660:
1657:
1654:
1651:
1648:
1645:
1642:
1639:
1636:
1633:
1630:
1627:
1624:
1621:
1608:
1595:
1592:
1554:
1551:
1548:
1545:
1542:
1539:
1536:
1533:
1530:
1527:
1512:
1509:
1493:
1490:
1487:
1474:
1471:
1466:
1463:
1454:
1451:
1443:
1432:
1419:
1404:
1395:
1392:
1376:
1373:
1370:
1357:
1354:
1349:
1346:
1337:
1327:
1322:
1318:
1306:
1295:
1274:
1245:
1241:
1237:
1223:
1198:
1187:
1162:
1138:
1133:
1129:
1115:
1113:
1098:
1091:
1087:
1072:
1065:
1060:
1026:
1006:
986:
983:
973:
956:
930:
917:
904:
889:
887:
882:
880:
865:
858:
854:
850:
846:
842:
838:
833:
817:
798:
795:
792:
779:
759:
748:
731:
713:
710:
680:
662:
659:
656:
621:
618:
605:
594:
591:
573:
568:
566:
562:
558:
554:
550:
545:
531:
528:
518:
515:
512:
502:
492:
489:
486:
471:
469:
465:
461:
457:
417:
381:
366:
362:
353:
336:
323:
312:
287:
284:
281:
274:
273:
272:
271:
253:
250:
243:
242:
241:
240:
222:
215:
214:
213:
212:
194:
186:
185:
184:
183:
165:
162:
159:
146:
143:
138:
135:
126:
120:
101:
98:
95:
82:
72:
58:
57:
56:
48:
46:
41:
37:
30:
26:
22:
3291:Tender offer
3211:Public float
3181:Market trend
3171:Market depth
2991:Growth stock
2965:Buy and hold
2938:
2874:(Cap-to-GDP)
2714:Floor trader
2704:Market maker
2687:Floor broker
2675:Participants
2618:Golden share
2613:Common stock
2589:Third market
2493:
2472:(4): 34–43,
2469:
2465:
2459:
2450:
2441:
2432:
2395:
2386:
2384:
2373:
2363:
2361:
2353:
2348:
2344:
2295:
2293:
2191:
2186:
2184:
2179:
2175:
2173:
2123:
2118:
2116:
2008:
2003:
1999:
1997:
1992:
1857:
1772:
1770:
1761:
1596:
1593:
1513:
1510:
1405:
1401:
1393:
1296:
1243:
1239:
1238:
1116:
1111:
1089:
1085:
1063:
1062:Subtracting
1061:
890:
885:
883:
878:
856:
852:
848:
844:
840:
836:
834:
749:
571:
569:
564:
560:
556:
555:= earnings,
552:
548:
546:
472:
467:
463:
459:
455:
382:
313:
310:
54:
39:
33:
21:Ford Model T
3296:Uptick rule
3276:Stock split
3256:Squeeze-out
3251:Speculation
3196:Open outcry
3085:Block trade
3017:Pairs trade
3332:Investment
3326:Categories
3301:Volatility
3281:Stock swap
3201:Order book
2952:strategies
2878:Book value
2746:Arbitrager
2741:Speculator
2369:derivation
2002:. Then if
1114:, we get:
307:Derivation
2917:Fed model
2912:EV/EBITDA
2827:Dark pool
2758:Regulator
2603:Types of
2569:Types of
2300:PEG ratio
2267:−
2232:−
2074:−
2052:−
1819:−
1637:−
1605:Φ
1461:Δ
1448:Φ
1344:Δ
1316:Δ
1257:Δ
1205:Δ
1169:Δ
1145:Δ
1127:Δ
1099:≡
1073:≡
1040:Δ
1030:Δ
1017:Δ
997:Δ
960:Δ
934:Δ
908:Δ
866:≡
799:−
519:−
503:−
415:Δ
360:Δ
133:Δ
102:−
3246:Slippage
3206:Position
3191:Momentum
3095:Dividend
2774:Exchange
2731:Investor
2408:See also
642:. Since
3135:Haircut
2939:T-model
2751:Scalper
2571:markets
2486:4479045
2391:version
2364:ex post
2000:1 – D/E
855:. Then
51:Formula
43:into a
40:T-model
36:finance
3156:Margin
3024:(PMPT)
2886:(CAPM)
2736:Hedger
2709:Trader
2682:Broker
2605:stocks
2484:
1858:Since
1773:PB = 1
1511:where
547:where
383:Where
187:where
3311:Yield
3286:Trade
3221:Rally
3142:(IPO)
3030:(RMH)
3003:(MPT)
2982:(EMH)
2935:(SML)
2924:(NAV)
2898:(DDM)
2892:(CML)
2863:(APT)
2856:Alpha
2823:(STP)
2817:(DMA)
2811:(ECN)
2805:(MTF)
2799:(ATS)
2482:JSTOR
2425:Notes
2362:When
851:with
843:with
38:, the
3146:Long
2950:and
2880:(BV)
2867:Beta
2119:E/BV
1594:and
888:as:
847:and
696:and
27:and
2474:doi
2387:ROE
2358:Use
2345:ROE
2296:P–E
2185:If
2178:if
1993:ROE
1242:is
572:XCF
565:XCF
557:Div
549:XCF
468:gBV
34:In
3328::
2480:,
2470:43
2468:,
2351:.
2302:"
2187:PB
2180:PB
2004:PB
1995:.
1950:,
1244:PB
1112:AB
1086:AB
881:.
879:AB
849:BV
841:PB
837:PB
561:BV
2554:e
2547:t
2540:v
2476::
2349:T
2329:g
2325:E
2321:/
2315:P
2277:)
2272:g
2262:T
2257:(
2254:E
2251:O
2246:R
2237:g
2229:E
2226:O
2221:R
2213:=
2207:E
2202:P
2176:T
2157:P
2153:D
2148:+
2143:g
2138:=
2133:T
2100:B
2095:P
2088:)
2085:E
2081:/
2077:D
2071:1
2068:(
2065:E
2062:O
2057:R
2049:E
2046:O
2041:R
2033:+
2028:g
2023:=
2018:T
1976:P
1971:E
1965:=
1960:T
1935:P
1930:=
1927:V
1922:B
1897:V
1892:B
1885:E
1879:=
1876:E
1873:O
1868:R
1844:E
1841:O
1838:R
1835:=
1830:1
1824:g
1816:E
1813:O
1808:R
1800:+
1795:g
1790:=
1785:T
1745:p
1742:a
1739:C
1736:t
1733:k
1728:M
1721:s
1718:e
1715:i
1712:t
1709:i
1706:l
1703:i
1700:b
1697:a
1694:i
1691:l
1688:l
1685:a
1682:t
1679:o
1676:t
1673:+
1670:s
1667:t
1664:e
1661:s
1658:s
1655:a
1652:s
1649:s
1646:o
1643:r
1640:g
1634:p
1631:a
1628:C
1625:t
1622:k
1617:M
1609:=
1555:w
1552:o
1549:l
1546:f
1543:h
1540:s
1537:a
1534:c
1531:=
1528:F
1523:C
1497:)
1494:g
1491:+
1488:1
1483:(
1475:B
1472:P
1467:B
1464:P
1455:+
1452:g
1444:+
1438:P
1433:F
1428:C
1420:=
1415:T
1380:)
1377:g
1374:+
1371:1
1366:(
1358:B
1355:P
1350:B
1347:P
1338:+
1333:g
1328:=
1323:P
1319:P
1310:)
1307:4
1304:(
1280:g
1275:=
1269:B
1262:B
1240:A
1224:)
1217:B
1210:B
1199:+
1194:1
1188:(
1181:A
1174:A
1163:+
1157:B
1150:B
1139:=
1134:P
1130:P
1090:P
1064:P
1045:B
1035:A
1027:+
1022:B
1012:A
1007:+
1002:A
992:B
987:+
984:B
979:A
974:=
970:)
965:B
957:+
952:B
947:(
944:)
939:A
931:+
926:A
921:(
918:=
913:P
905:+
900:P
886:P
857:P
853:B
845:A
818:B
813:P
804:g
796:E
793:O
788:R
780:=
774:P
769:D
763:)
760:3
757:(
732:V
727:B
720:P
714:=
711:B
706:P
681:V
676:B
669:E
663:=
660:E
657:O
652:R
627:P
622:F
619:C
614:X
606:+
600:P
595:v
592:i
587:D
553:E
532:V
529:B
524:g
516:v
513:i
508:D
498:E
493:=
490:F
487:C
482:X
464:g
460:g
456:g
440:D
418:P
393:P
367:P
363:P
354:+
348:P
343:D
337:=
332:T
327:)
324:2
321:(
288:E
285:O
282:R
254:B
251:P
223:g
195:T
169:)
166:g
163:+
160:1
155:(
147:B
144:P
139:B
136:P
127:+
121:B
116:P
107:g
99:E
96:O
91:R
83:+
78:g
73:=
68:T
31:.
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