The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The EBITDA Yield for Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 0.077616.

Investing in the stock market offers the potential for big returns. On the flip side, investors can also experience major losses when trading equities. Investors are typically trying their best to maximize returns while limiting losses. Figuring out the best way to do this is no easy proposition. There may be periods where everything seems to be working out, and the returns are rolling in. There may be other times when nothing seems to be going right, and the losses start to pile up. Nobody can predict with pinpoint certainty which way the market will shift in the future. Preparing the portfolio for multiple scenarios can help the investor stick it out when the waters get choppy. Having a properly diversified stock portfolio may help investors ride out the turbulence when it inevitably takes control of the market.

ROIC

The Return on Invested Capital (aka ROIC) for Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 0.067003. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 3.185962. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 0.043082.

Another useful indicator to assist in detmining rank is the ERP5 Rank. This is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 8452. The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, the MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 7568. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

**Piotroski F-Score**

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 5. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

**Gross Margin**

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 20.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

**Price Index**

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Washington H. Soul Pattinson and Company Limited (ASX:SOL) for last month was 1.03333. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 0.88372.

**Shareholder Yield, Shareholder Yield (Mebane Faber)**

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 0.025985. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of Washington H. Soul Pattinson and Company Limited ASX:SOL is -0.04013. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Washington H. Soul Pattinson and Company Limited ASX:SOL is 1.536299. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 14.782253. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Washington H. Soul Pattinson and Company Limited (ASX:SOL) is 21.820879. This ratio is found by taking the current share price and dividing by earnings per share.

Investors are usually trying to figure out the best strategy to use when tackling the equity market. Because there is no one perfect method for picking winning stocks, investors may have to try various techniques before they get it right. There are many different factors that can affect the financial health of a company, and this makes it hard to concoct a formula that works well across the board. Studying all the data can help with investing decisions, but it is typically more important to be focusing on the right information. Knowing exactly what data should be studied may only come by logging many hours of research.

In terms of EBITDA Yield, Pollard Banknote Limited (TSX:PBL) currently has a value of 0.077615. This value is derived by dividing EBITDA by Enterprise Value.

Investing in the stock market comes with inherent risk. Some stocks are much riskier than others, but there will always be some level of risk no matter which stocks are chosen. Individual investors managing their own portfolios are constantly on the lookout for investing tips or some kind of information that may confirm their gut feeling about a certain stock. Investors may want to be wary when listening to stock investment advice from friends, family members, or even trusted colleagues. People are usually quick to tell others about the winning stocks that they have picked in the past, but they may not be very forthcoming about discussing those portfolio clunkers. After hearing about the next big stock, investors can always do the research and check the prospect out for themselves.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Pollard Banknote Limited (TSX:PBL) is 4. A score of nine indicates a high value stock, while a score of one indicates a low value stock.

The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Pollard Banknote Limited (TSX:PBL) is 6.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

**Price Index**

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Pollard Banknote Limited (TSX:PBL) for last month was 0.99187. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Pollard Banknote Limited (TSX:PBL) is 0.93339.

Another useful indicator to assist in detmining rank is the ERP5 Rank. This is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Pollard Banknote Limited (TSX:PBL) is 6953. The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, the MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Pollard Banknote Limited (TSX:PBL) is 6210. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

**Earnings Yield**

The Earnings to Price yield of Pollard Banknote Limited TSX:PBL is 0.029116. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for Pollard Banknote Limited TSX:PBL is 0.042308. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for Pollard Banknote Limited (TSX:PBL) is 0.030855.

**ROIC**

The Return on Invested Capital (aka ROIC) for Pollard Banknote Limited (TSX:PBL) is 0.166674. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Pollard Banknote Limited (TSX:PBL) is 5.240622. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Pollard Banknote Limited (TSX:PBL) is 0.264701.

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Pollard Banknote Limited (TSX:PBL) is 50. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Pollard Banknote Limited (TSX:PBL) is 48.

The investing world can be an exciting yet scary place. It is an ever-changing environment filled with profits, losses, and everything in-between. There are always new challenges waiting right around the corner for the individual investor. Just when things seem stable and steady, some unexpected event can send markets into a tizzy. Most investors try hard to create a stock portfolio that can stand on its own during the stormy periods. Unsettling market conditions come with the territory, but knowing how to deal with these conditions can separate the winners from the losers over the long run.

**Receive News & Ratings Via Email** - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.