Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.647^{a} 
.419 
.418 
1273.85784 
a. Predictors: (Constant), 3yr
Regression Beta, Expected Growth in EPS: next 5 years, Payout Ratio 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
2.741 
.914 

2.999 
.003 
Expected Growth in EPS: next 5
years 
142.627 
4.029 
.669 
35.397 
.000 

Payout Ratio 
5.668 
1.199 
.090 
4.726 
.000 

3yr Regression Beta 
.550 
.477 
.021 
1.153 
.249 

a. Dependent Variable: Current
PE 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


The Multicollinearity
Problem
Correlations 



Current PE 
Payout Ratio 
Expected Growth in EPS: next 5 years 
Regression Beta 
Current PE 
Pearson Correlation 
1 
.084^{**} 
.432^{**} 
.078^{**} 
Sig. (2tailed) 

.000 
.000 
.000 

N 
4062 
4031 
2206 
3283 

Payout Ratio 
Pearson Correlation 
.084^{**} 
1 
.275^{**} 
.115^{**} 
Sig. (2tailed) 
.000 

.000 
.000 

N 
4031 
4118 
2230 
3318 

Expected Growth in EPS: next 5
years 
Pearson Correlation 
.432^{**} 
.275^{**} 
1 
.171^{**} 
Sig. (2tailed) 
.000 
.000 

.000 

N 
2206 
2230 
2631 
2206 

Regression Beta 
Pearson Correlation 
.078^{**} 
.115^{**} 
.171^{**} 
1 
Sig. (2tailed) 
.000 
.000 
.000 


N 
3283 
3318 
2206 
5200 

**. Correlation is significant at the 0.01 level (2tailed). 



PEG Ratio Regression with intercept
Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.483^{a} 
.233 
.232 
99.60100 
a. Predictors: (Constant),
Payout Ratio, Regression Beta, ln (Expcted Growth) 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
.149 
.106 

1.395 
.163 
ln (Expcted Growth) 
.830 
.041 
.441 
2.016E1 
.000 

Regression Beta 
.162 
.037 
.093 
4.351 
.000 

Payout Ratio 
.554 
.095 
.129 
5.820 
.000 

a. Dependent Variable: PEG
Ratio 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


PEG ratio with no intercept
Model Summary 

Model 
R 
R Square^{b} 
Adjusted R Square 
Std. Error of the Estimate 
1 
.909^{a} 
.826 
.825 
99.62656 
a. Predictors: Payout Ratio,
Regression Beta, ln (Expcted
Growth) 

b. For regression through the
origin (the nointercept model), R Square measures the proportion of the
variability in the dependent variable about the origin explained by
regression. This CANNOT be compared to R Square for models
which include an intercept. 
Coefficients^{a,b,c} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
ln (Expcted Growth) 
.782 
.023 
.775 
3.448E1 
.000 
Regression Beta 
.133 
.031 
.072 
4.309 
.000 

Payout Ratio 
.541 
.095 
.093 
5.708 
.000 

a. Dependent Variable: PEG
Ratio 





b. Linear Regression through
the Origin 




c. Weighted Least Squares
Regression  Weighted by Market Cap 


EV/EBITDA Multiple Regressions
Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.671^{a} 
.450 
.448 
722.68533 
a. Predictors: (Constant),
Reinvestment Rate, Expected Growth in Revenues: next 5 years, Eff Tax Rate, ROC 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
4.490 
.676 

6.644 
.000 
Expected Growth in Revenues:
next 5 years 
96.970 
3.320 
.640 
29.212 
.000 

Effective Tax Rate 
9.284 
1.761 
.114 
5.271 
.000 

ROC 
1.745 
1.346 
.028 
1.296 
.195 

Reinvestment Rate 
1.837 
.544 
.073 
3.380 
.001 

a. Dependent Variable:
EV/EBITDA 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.613^{a} 
.376 
.374 
945.25361 
a. Predictors: (Constant),
Reinvestment Rate, Expected Growth in Revenues: next 5 years, Eff Tax Rate, ROC 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
8.641 
.884 

9.776 
.000 
Expected Growth in Revenues:
next 5 years 
109.581 
4.342 
.589 
25.238 
.000 

Eff Tax Rate 
14.465 
2.304 
.145 
6.279 
.000 

ROC 
2.835 
1.761 
.038 
1.610 
.108 

Reinvestment Rate 
2.252 
.711 
.073 
3.167 
.002 

a. Dependent Variable: EV/EBIT 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


Regression with intercept
Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.636^{a} 
.404 
.403 
421.28395 
a. Predictors: (Constant),
Dividend Payout, ROE, Regression Beta, Expected Growth in EPS: next 5 years 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
4.523 
.339 

1.335E1 
.000 
ROE 
23.034 
.812 
.502 
28.369 
.000 

Expected Growth in EPS: next 5
years 
26.253 
1.266 
.391 
20.745 
.000 

Regression Beta 
.842 
.156 
.100 
5.396 
.000 

Dividend Payout 
.569 
.347 
.031 
1.638 
.102 

a. Dependent Variable: PBV
Ratio 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


Without intercept
Model Summary 

Model 
R 
R Square^{b} 
Adjusted R Square 
Std. Error of the Estimate 
1 
.801^{a} 
.641 
.640 
440.76056 
a. Predictors: ROE, Payout
Ratio, Expected Growth in EPS: next 5 years, Regression Beta 

b. For regression through the
origin (the nointercept model), R Square measures the proportion of the
variability in the dependent variable about the origin explained by
regression. This CANNOT be compared to R Square for models
which include an intercept. 
Coefficients^{a,b,c} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
Payout Ratio 
2.344 
.333 
.131 
7.042 
.000 
Regression Beta 
.110 
.146 
.019 
.759 
.448 

Expected Growth in EPS: next 5
years 
18.019 
1.168 
.370 
15.429 
.000 

ROE 
17.294 
.717 
.589 
24.114 
.000 

a. Dependent Variable: PBV
Ratio 





b. Linear Regression through
the Origin 





c. Weighted Least Squares
Regression  Weighted by Market Cap 


With intercept
Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.745^{a} 
.555 
.554 
458.86341 
a. Predictors: (Constant),
Market Debt to Capital, Expected Growth in Revenues: next 5 years, ROC 




Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
3.921 
.356 

1.101E1 
.000 
ROC 
18.057 
.875 
.424 
20.633 
.000 

Expected Growth in Revenues:
next 5 years 
52.156 
1.974 
.498 
26.415 
.000 

Market Debt to Capital 
2.590 
.808 
.066 
3.205 
.001 

a. Dependent Variable: EV/
Invested Capital 




b. Weighted Least Squares
Regression  Weighted by Market Cap 


Without intercept
Model Summary 

Model 
R 
R Square^{b} 
Adjusted R Square 
Std. Error of the Estimate 
1 
.837^{a} 
.701 
.700 
478.94395 
a. Predictors: Market Debt to
Capital, ROC, Expected Growth in Revenues: next 5 years 

b. For regression through the
origin (the nointercept model), R Square measures the proportion of the
variability in the dependent variable about the origin explained by
regression. This CANNOT be compared to R Square for models
which include an intercept. 
Coefficients^{a,b,c} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
ROC 
11.342 
.655 
.413 
17.322 
.000 
Expected Growth in Revenues:
next 5 years 
41.329 
1.787 
.570 
23.130 
.000 

Market Debt to Capital 
8.670 
.616 
.241 
1.408E1 
.000 

a. Dependent Variable: EV/
Invested Capital 




b. Linear Regression through
the Origin 





c. Weighted Least Squares
Regression  Weighted by Market Cap 


With intercept
Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.761^{a} 
.578 
.577 
248.68771 
a. Predictors: (Constant), Net
Margin, Dividend Payout, Regression Beta, Expected Growth in EPS: next 5
years 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
2.594 
.186 

1.396E1 
.000 
Expected Growth in EPS: next 5
years 
20.064 
.760 
.447 
26.396 
.000 

Regression Beta 
.049 
.094 
.009 
.521 
.602 

Dividend Payout 
.063 
.213 
.005 
.297 
.767 

Net Margin 
25.355 
.708 
.579 
35.827 
.000 

a. Dependent Variable: PS Ratio 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


Without intercept
Model Summary 

Model 
R 
R Square^{b} 
Adjusted R Square 
Std. Error of the Estimate 
1 
.862^{a} 
.743 
.743 
262.38542 
a. Predictors: Expected Growth
in EPS: next 5 years, Payout Ratio, Net Margin, Regression Beta 

b. For regression through the
origin (the nointercept model), R Square measures the proportion of the
variability in the dependent variable about the origin explained by
regression. This CANNOT be compared to R Square for models
which include an intercept. 
Coefficients^{a,b,c} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
Net Margin 
21.827 
.696 
.688 
31.340 
.000 
Payout Ratio 
1.892 
.202 
.150 
9.382 
.000 

Regression Beta 
.632 
.089 
.161 
7.062 
.000 

Expected Growth in EPS: next 5
years 
14.934 
.706 
.459 
21.149 
.000 

a. Dependent Variable: PS
Ratio 





b. Linear Regression through
the Origin 





c. Weighted Least Squares
Regression  Weighted by Market Cap 


With intercept
Model Summary 

Model 
R 
R Square 
Adjusted R Square 
Std. Error of the Estimate 
1 
.732^{a} 
.536 
.535 
288.57291 
a. Predictors: (Constant),
Pretax Operating Margin, Expected Growth in Revenues: next 5 years, Market
Debt to Capital 
Coefficients^{a,b} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
(Constant) 
1.542 
.177 

8.687 
.000 
Expected Growth in Revenues:
next 5 years 
32.909 
1.207 
.536 
27.274 
.000 

Market Debt to Capital 
2.985 
.469 
.126 
6.369 
.000 

Pretax Operating Margin 
9.334 
.467 
.383 
20.000 
.000 

a. Dependent Variable: EV/Sales 





b. Weighted Least Squares
Regression  Weighted by Market Cap 


Without intercept
Model Summary 

Model 
R 
R Square^{b} 
Adjusted R Square 
Std. Error of the Estimate 
1 
.865^{a} 
.747 
.747 
296.20201 
a. Predictors: Pretax
Operating Margin, Market Debt to Capital, Expected Growth in Revenues: next
5 years 

b. For regression through the
origin (the nointercept model), R Square measures the proportion of the
variability in the dependent variable about the origin explained by
regression. This CANNOT be compared to R Square for models
which include an intercept. 
Coefficients^{a,b,c} 

Model 
Unstandardized Coefficients 
Standardized Coefficients 
t 
Sig. 

B 
Std. Error 
Beta 

1 
Expected Growth in Revenues:
next 5 years 
26.494 
.980 
.577 
27.048 
.000 
Market Debt to Capital 
4.670 
.438 
.191 
1.066E1 
.000 

Pretax Operating Margin 
7.556 
.431 
.442 
17.551 
.000 

a. Dependent Variable:
EV/Sales 





b. Linear Regression through
the Origin 





c. Weighted Least Squares
Regression  Weighted by Market Cap 

