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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: muwis123 who wrote (23131)	1/15/2006 2:48:10 PM
From: bruwin	Respond to of 78744

The Return on Capital I was referring to is one which we prefer to target, namely Pretax Profit as a percentage of Capital Employed (P/CE). We prefer ‘Pretax’ because it doesn’t include any once-off tax credits, or similar. We see this ratio as indicating what profit a company has earned with its available capital. VZ belongs to the sub-sector, Telecom Services-Domestic. I did a screen of all the stocks in this sector and eliminated all negative P/CE ratios, and ignored one stock, GTCC because its ratio was 426%. The average P/CE ratio of the balance of 21 companies was 10.1%, with VZ below this average in 10th. place at 8.6%. The following companies were between 20% and 31%, viz. TALK, NPSI, CTCO and WWVY. Then came BLS, SPM, SHEN and CTCI. I suppose it’s probably fair to say that one ratio doesn’t give the complete picture.