Comments for Fat Pitch Financials

Comment on Return on Enterprise Value (ROEV) Backtest by Best of Personal Finance Investing Blog Posts 2-07-2012

Best of Personal Finance Investing Blog Posts 2-07-2012 — Tue, 07 Feb 2012 02:35:15 +0000

[...] Return on Enterprise Value (ROEV) Backtest -Fat Pitch Financials [...]

Comment on Return on Enterprise Value (ROEV) Backtest by Ron

Ron — Sun, 05 Feb 2012 12:31:25 +0000

You may be interested in looking at free cash to invested capital. It is similar to to ROEV. It differs in that cap ex is now considered and that cash is not removed.

Comment on Steak n Shake Earnings Call Notes by Tom Anderson

Tom Anderson — Wed, 01 Feb 2012 02:14:54 +0000

Just as a point of interest, I knew Blade in college. It’s astonishing that such an asshole could be in charge of any major aspect of a corporation. Stunning. Blade is, without a doubt, one of the biggest jerks I have ever, ever met in my life, and I have met a lot. No wonder he is no longer with the organization.

Comment on Current Best Values: Return on Enterprise Value by Value Investing HQ

Value Investing HQ — Sat, 28 Jan 2012 06:55:03 +0000

They do look familiar, a lot of these are magic formula stocks :)

-Alexg

Comment on Return on Enterprise Value (ROEV) Backtest by Weekend Reading – Finance & Investing Links for 1-28-12

Weekend Reading – Finance & Investing Links for 1-28-12 — Sat, 28 Jan 2012 00:59:32 +0000

[...] Return on Enterprise Value (ROEV) Backtest (The valuation ratio every investor should know!) – Fat Pitch Financials [...]

Comment on Return on Enterprise Value (ROEV) Backtest by Backtesting Validates ROEV Investment Strategy

Backtesting Validates ROEV Investment Strategy — Thu, 26 Jan 2012 12:34:17 +0000

[...] couple of days ago I left a comment on a post at Fat Pitch Financials praising George for presenting a sound valuation strategy to his readers. I commented that I [...]

Comment on Return on Enterprise Value (ROEV) Backtest by Ken Faulkenberry

Ken Faulkenberry — Tue, 24 Jan 2012 20:20:38 +0000

Thank you George…you are doing an awesome service for your readers and investors in general!

Comment on Enterprise Value to EBITDA Ratio Backtest by Return on Enterprise Value (ROEV) Backtest

Return on Enterprise Value (ROEV) Backtest — Tue, 24 Jan 2012 16:43:17 +0000

[...] with this stock fundamental until Ken Faulkenberry of AAAMP Blog left the following comment on my Enterprise Value to EBITDA Ratio Backtest post: Great post; glad to read someone uses this strategy in this day of “passive management”. [...]

Comment on Enterprise Value to EBITDA Ratio Backtest by George

George — Tue, 24 Jan 2012 14:53:34 +0000

Tom – I used StockScreen123 to do the backtest and then I put the results into a spreadsheet to do some additional calculations. It would be very possible to do a back test of EV/EBITDA 20%.

Comment on Enterprise Value to EBITDA Ratio Backtest by Weekend Reading – Finance & Investing Links for 1-21-12

Weekend Reading – Finance & Investing Links for 1-21-12 — Sat, 21 Jan 2012 02:12:37 +0000

[...] Enterprise Value to EBITDA Ratio Backtest – Fat Pitch Financials (note my chat with George in the comments section). [...]

Comment on Current Best Values: Enterprise Value to EBITDA Ratio by krs

krs — Thu, 19 Jan 2012 23:45:38 +0000

Note that Gray and Vogel eliminated “…all REITS, ADRS, closed-end funds, utilities, and financial firms.” (See paper you linked to in a prior post.) It could be that insurance companies weren’t in their study.

Comment on Enterprise Value to EBITDA Ratio Backtest by Tom

Tom — Thu, 19 Jan 2012 03:25:30 +0000

How exactly do you guys backtest?

I would like to back test a simple strategy: EV/EBITDA 20%

Is this possible?

Comment on Enterprise Value to EBITDA Ratio Backtest by Ken Faulkenberry

Ken Faulkenberry — Thu, 19 Jan 2012 03:15:37 +0000

Your awesome George! I appreciate your diligence and desire to get it right and provide your readers some great information. I look forward to your coming research!

Comment on Current Best Values: Enterprise Value to EBITDA Ratio by George

George — Wed, 18 Jan 2012 16:40:39 +0000

Kevin – HIG and PWER do look interesting? Have you looked into them further?

Carl – I too noticed that the list has quite a few insurance companies on the list. It begs the question of whether or not insurance company stocks are actually trading below their intrinsic value. I’m not too good at valuing insurance companies, so maybe someone else can chime in on this question.

Comment on Enterprise Value to EBITDA Ratio Backtest by George

George — Wed, 18 Jan 2012 14:50:30 +0000

Hi Ken,
I goofed the first time I ran the Net Cash Flow / Enterprise Value. I accidentally subtracted depreciation and amortization from net income instead of adding it back to net income to determine “net cash flow”. Now that I’ve corrected the formula for Net Cash Flow / Enterprise Value the top quintile outperforms EBITDA/EV from Jan 1, 2002 to 12/31/2011. Net Cash Flow / Enterprise Value return 11.48% annualized versus the 11.37% annualized return for EBITDA/EV over the same period. Those numbers are very similar, so I will definitely be doing a complete backtest on this factor. The complete backtest will look at 4 different quarterly start dates and it will also generate Sharpe and Sortino ratios.

Comment on Current Best Values: Enterprise Value to EBITDA Ratio by Carl

Carl — Wed, 18 Jan 2012 06:44:18 +0000

Interesting list. A lot of insurance companies.

Comment on Graham-Dodd-Shiller 10 Year PE Ratio Stock Screen by Mike

Mike — Wed, 18 Jan 2012 00:37:13 +0000

George,
I’ll start by saying great work and I appreciate all the effort you have put into researching the stock market. I recently read Phil Town’s “Rule #1 Investor” and have been inspired to get started in the stock market. I recently found some of your posts online, where you had run some calcs to find companies that fit the Rule 1 requirements. The posts were dated back in 2006. Was just wondering if you had any luck with any of those companies and also if you have put together a more recent list of Rule 1 companies.
Thanks again,
Mike

Comment on How to calculate your return on investment by Lionel

Lionel — Tue, 17 Jan 2012 18:24:47 +0000

I come up with the same numbers as Simon, 28% & 3.6%. I’m interested in my Personal Rate of Return. So I don’t include the dividend/profits in the calcuation. They are not funds I’m pulling out of the account at the times they’re added. On the other hand I am having to pay taxes. (Not sure why those dates aren’t more like April 15 however.)

So the string of cash flows becomes simply: $100k in, $1k in, and $129k out.

Comment on Current Best Values: Enterprise Value to EBITDA Ratio by Kevin

Kevin — Tue, 17 Jan 2012 15:50:26 +0000

HIG, PWER

Comment on Enterprise Value to EBITDA Ratio Backtest by Ken Faulkenberry

Ken Faulkenberry — Tue, 17 Jan 2012 14:51:23 +0000

Awesome. Thank you George. Yes, that would be great! I hope you will submit this post to the Self-Directed Investing For Retirement Carnival on the AAAMP Blog.