PE Ratio Regressions

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.647a

.419

.418

1273.85784

a. Predictors: (Constant), 3-yr Regression Beta, Expected Growth in EPS: next 5 years, Payout Ratio

 

 

 

Coefficientsa,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

3-yr 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. (2-tailed)

 

.000

.000

.000

N

4062

4031

2206

3283

Payout Ratio

Pearson Correlation

-.084**

1

-.275**

-.115**

Sig. (2-tailed)

.000

 

.000

.000

N

4031

4118

2230

3318

Expected Growth in EPS: next 5 years

Pearson Correlation

.432**

-.275**

1

.171**

Sig. (2-tailed)

.000

.000

 

.000

N

2206

2230

2631

2206

Regression Beta

Pearson Correlation

.078**

-.115**

.171**

1

Sig. (2-tailed)

.000

.000

.000

 

N

3283

3318

2206

5200

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

 

 

 

 

 

PEG Ratio Regressions

 

 

PEG Ratio Regression with intercept

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.483a

.233

.232

99.60100

a. Predictors: (Constant), Payout Ratio, Regression Beta, ln (Expcted Growth)

 

 

 

Coefficientsa,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 Squareb

Adjusted R Square

Std. Error of the Estimate

1

.909a

.826

.825

99.62656

a. Predictors: Payout Ratio, Regression Beta, ln (Expcted Growth)

b. For regression through the origin (the no-intercept 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.

 

 

 

Coefficientsa,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

.671a

.450

.448

722.68533

a. Predictors: (Constant), Reinvestment Rate, Expected Growth in Revenues: next 5 years, Eff Tax Rate, ROC

 

Coefficientsa,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

 

 

 

 

EV/EBIT Multiple Regression

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.613a

.376

.374

945.25361

a. Predictors: (Constant), Reinvestment Rate, Expected Growth in Revenues: next 5 years, Eff Tax Rate, ROC

 

 

Coefficientsa,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

 

 

 

PBV Ratio Regression

Regression with intercept

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.636a

.404

.403

421.28395

a. Predictors: (Constant), Dividend Payout, ROE, Regression Beta, Expected Growth in EPS: next 5 years

 

 

Coefficientsa,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 Squareb

Adjusted R Square

Std. Error of the Estimate

1

.801a

.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 no-intercept 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.

 

Coefficientsa,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

 

 

 

 

EV/Capital Regression

With intercept

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.745a

.555

.554

458.86341

a. Predictors: (Constant), Market Debt to Capital, Expected Growth in Revenues: next 5 years, ROC

 

 

 

Coefficientsa,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 Squareb

Adjusted R Square

Std. Error of the Estimate

1

.837a

.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 no-intercept 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.

 

 

Coefficientsa,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

 

 

 

PS Regression

With intercept

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.761a

.578

.577

248.68771

a. Predictors: (Constant), Net Margin, Dividend Payout, Regression Beta, Expected Growth in EPS: next 5 years

 

 

Coefficientsa,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 Squareb

Adjusted R Square

Std. Error of the Estimate

1

.862a

.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 no-intercept 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.

 

 

Coefficientsa,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

 

 

 

 

EV/Sales Regression

With intercept

 

Model Summary

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

1

.732a

.536

.535

288.57291

a. Predictors: (Constant), Pre-tax Operating Margin, Expected Growth in Revenues: next 5 years, Market Debt to Capital

 

 

Coefficientsa,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

Pre-tax 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 Squareb

Adjusted R Square

Std. Error of the Estimate

1

.865a

.747

.747

296.20201

a. Predictors: Pre-tax Operating Margin, Market Debt to Capital, Expected Growth in Revenues: next 5 years

b. For regression through the origin (the no-intercept 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.

 

 

Coefficientsa,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

Pre-tax 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