Finance > Solutions Guide > Bloomberg Notes: Portfolio Management Strategies & Stock Analysis | complete 2025/2026. (All)

Bloomberg Notes: Portfolio Management Strategies & Stock Analysis | complete 2025/2026.

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Bloomberg notes Portfolio management • Different stock o Value Stock ▪ High dividend yield, low p/e ratio ▪ Often neglected stocks that maverick investors go in to ▪ Reached the end of th... e business cycle (not growing) o Growth Stock ▪ High p/e ratio, low dividend yield ▪ Could grow but don’t have the earnings history to back this up ▪ Bigger risk that value stocks ▪ High chance of growth means investors will pay more for them o Garp stocks ▪ Target stocks in the middle ground between growth and value • Price earnings ratio o Price/eps o How much are investors willing to pay for a dollar of earnings above the stock o If eps is 2.8, and price is 374.23, then the p/e ratio is 133.7 ▪ Meaning investors are willing to pay 374.23 dollars for every 2.8 dollars of that companies earnings • 133.7 times earnings to price willing to pay o 16 is a low p/e but not to low (value) ▪ Not growing anymore, but paying regular dividends o Over 100 is high (growth) • Dividend yield o The measure of returns from a company paying dividends to its investors o Annuals dividends per share/price per share ▪ It’s a percent so times by 100 o Don’t need to pay dividends (skipping them does not affect credit score), but regular payments are a sign of stability • Could also look at price to book ratio instead of p/e raito • p/b ratio o price/book value per share o book value=(liabilities-assets on balance sheet)/shares outstanding o a measure of how much your willing to pay for a dollar of book value for that shareholders equity per share o a p/b ratio of 0.9 represents a very distressed company o p/b of less than 1 (or p/e of less than 5) is aggressive ▪ value investors go for these while everyone else is running away ▪ for a value investor, a price to book ration below 1.5 is good, while below one is distressed • Could look to invest in a company with the following parameters (value strategy) [Show More]

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