In reality, EV/EBITDA can actually be significantly worse than P/E or P/B ratios because EBITDA ignores certain real costs of doing business like taxes, depreciation, and amortization. Put simply, EBITDA is even farther removed from the real cash flows of the business than EPS or net income.
The Health Care sector ranks fifth out of the 10 sectors as detailed in our 3Q15 Sector Ratings for ETFs and Mutual Funds report. It gets our Neutral rating.
Earlier this week, Johnson & Johnson announced that it was capitalizing on global growth opportunities by expanding into one of the world’s largest market for pharmaceuticals. We’ll discuss why now is the perfect time to invest in Johnson & Johnson.
Investors are good at picking cheap funds. We want them to be better at picking funds with good stocks. Both are required to maximize success.
The Large Cap Growth style ranks fourth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report.
The All Cap Blend style ranks third out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report.
DTAs artificially raise reported assets and do not help generate operating profit while DTLs are like a source of interest-free financing. We remove the impact of DTAs and DTLs from our calculation of invested capital to ensure the more accurate measure of a firm’s return on invested capital (ROIC).
None of the fund styles earn a rating better than Neutral. My style ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each style.
Finding the best ETFs is an increasingly difficult task in a world where a new ETF seems to be born every 10 seconds.
This article explains how I determine the best ETFs in the 25 reports I publish each quarter on the Best & Worst ETFs and Mutual Funds Series by Sector and Style. Here is my 4Q Best & Worst preview. I follow these steps:
This report focuses on my top picks and pans for all sector funds. I will follow this summary with a detailed report on each sector.
At the outset of the fourth quarter of 2012, only a single sector earns an attractive rating. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each sector.
The best ETFs and mutual funds have high-quality holdings and low costs. As detailed in “A cheap fund is not always a good fund”, there are few funds that have both good holdings and low costs. While there are lots of cheap funds, there are very few with high-quality holdings.
The Health Care sector ranks third out of the ten major sectors as detailed in our sector roadmap. It gets my Neutral rating.
There are 36 “large cap value” ETFs. Per Figure 1, these 36 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 30 while the highest is 1178.
How do investors pick the ETF that will deliver the best performance?