Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-03-17
1. Returns - price ratio (the inverse of PE ratio) is a 3A rated bonds of the two-fold. If the 3A-grade bonds yield 8%, then satisfy the condition of the stock returns of 16%.
2. PE ratio not lower than the last five years, the highest average price-earnings ratio of 4 / 10. (Average PE ratio = given year, the average price / year proceeds).
3. Shares of the interest rate of not less than 3A grade bond yields 2 / 3. No distribution of dividends or non-profits, the stock not be considered.
4. Stock price should be lower than net book value of tangible assets per share of 2 / 3. Calculation method is: all of the assets value, net of business reputation, patents and other intangible assets, after subtracting all the debt, and then divided by the total number of shares.
5. Stock price does not exceed net current assets or liquidation of the net value of liquid 2 / 3. Liquid net worth = current assets liquidation - total liabilities. This is also the first theoretical basis.
6. Total debt less than tangible book value of assets.
7. The current ratio is not less than 2. The current ratio = current assets / current liabilities. It reflects the assets of the company's liquidity and solvency.
8. Total liabilities, net liquidation of no more than the liquid.
9. The last decade more than doubled profits.
10. The last decade, profits dropped by more than 5% of the year not exceeding two years.
