The Acquirer’s Multiple® is the valuation ratio used to find attractive takeover candidates.
It examines several financial statement items that other multiples like the price-to-earnings ratio do not, including debt, preferred stock, and minority interests; and interest, tax, depreciation, amortization.
The Acquirer’s Multiple® is calculated as follows:
Enterprise Value / Operating Earnings*
It is based on the investment strategy described in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations.
The Acquirer’s Multiple® differs from The Magic Formula® Earnings Yield because The Acquirer’s Multiple® uses operating earnings in place of EBIT. Operating earnings is constructed from the top of the income statement down, where EBIT is constructed from the bottom up. Calculating operating earnings from the top down standardizes the metric, making a comparison across companies, industries and sectors possible, and, by excluding special items–earnings that a company does not expect to recur in future years–ensures that these earnings are related only to operations. Similarly, The Acquirer’s Multiple® differs from the ordinary enterprise multiple because it uses operating earnings in place of EBITDA, which is also constructed from the bottom up.
I wish there were a way where I could see the action score, market cap, and any ratios I wanted all in one row. Or have it exported. I would like to be able to see all the top 20 action scores and then be able to see business descriptions, market cap, and ratios of my choosing. I havent figured this out yet with the software. Business discription is under Basic, Market cap is under ratios, and the action score is under action score. I have to go back and forth and this takes too much time.
Don't you worry Zach. Knew you would want something like this so it is ready to be released very soon. Hopefully within the week.
You can customize the columns and also export what you see on the screen.
When using the Stock Database, I cant see the stocks in perfect order by Action score. They seem to be in Alphabetical order. I also can't see their Action Score, just A, B, C exc. I'd like to see the numerical number. This makes it difficult to do the top 20 quant idea you suggest.
I would like to be able to see the results of my screen (matching companies) along with the data items that I screened as the landing page when the screen is run. From there, I would tab through the various pre-defined pages (which ideally could be customized).
smith & wesson changed from swhc to aobc 01jan17, in general when do tickers get updated? For instance i believe i saw a ticker gdl or gdc as the top growth score, yet they were bought jul16, no price action since, yet they were not weeded ou
i.e. a quality score ranging from A - C, rather than just an A
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