+3
Under review

Shareholder Yield and Price to Product Research (P/PR)

Brian Yu 6 years ago updated 5 years ago 4

Hi Jae!


 I think I sent an E-mail a while back on this, but could you guys perhaps add a Shareholder yield (Dividend + Debt Pay Down + Share buyback)? It's a better way yield than dividends in many ways and it shows how the company is adding value to the shareholder. 


The second metric I would really like to see is the Price to Product Research Ratio. It would just show the R &D relative to the current price. (An amazing metric to combine with the Price to Sale ratio)!


Thanks for your time Jae! :) 

+1

Thanks for the suggestion.

I'll keep this open and see how many requests I get regarding this.

Under review

I'll wait to see if anyone else is interested in Shareholder yield.

In the meantime, you've asked for both EV to R&D and Price to R&D per share. Tell me a little more about what you're hoping to get out of them.

Hi I apologize for the belated reply. I did not see this. So these two metrics are great ways to uncover hidden pharmaceutical and technology stocks. Price to sales ratio of below 1 and price to research ratios of below 10 are often excellent valuations. 


They help unmask a lot of companies that may not yet be profitable or are still growing their revenue. The p/s ratio and p/r ratio is what will help us figure out how much we should pay for a growing company we believe will some day be profitable in the future. 

I get that conservative value investors that are less growth oriented (perhaps the grahamites) might say show me the money/profits first or this is a hogwash strategy, but actually for alot of companies that already have earnings and are growing, often do show Great sales and research multiples.