- Look-through earnings include the profits that a company pays to its shareholders in the form of dividends and the retained earnings that the company uses to expand its operations. This concept was popularized by Warren Buffet to analyze the overall earnings-generating capabilities of the firm. The idea is that all of these profits have value to investors - the dividends provide an immediate benefit, while the retained earnings should increase the stock's value in the future.
The investor should consider all of these profits - the look-through earnings - in assessing the value of a stock. Look-through earnings also account for the taxes that would have been paid if the retained earnings had been distributed as dividends.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
company — a business owned by a group of people called shareholders, which has its own legal identity separate from its owners. Glossary of Business Terms A proprietorship, partnership, corporation, or other form of enterprise that engages in business.… … Financial and business terms
performing arts — arts or skills that require public performance, as acting, singing, or dancing. [1945 50] * * * ▪ 2009 Introduction Music Classical. The last vestiges of the Cold War seemed to thaw for a moment on Feb. 26, 2008, when the unfamiliar strains … Universalium
Oracle Corporation — Type Public Traded as NYSE: ORCL NASDAQ: … Wikipedia
Tax Increase Prevention and Reconciliation Act of 2005 — The Tax Increase Prevention and Reconciliation Act of 2005 (or TIPRA, USPL|109|222, USStat|120|345) was enacted on May 17, 2006. This bill prevents several tax provisions from sunseting in the near future. The two most notable pieces of the bill… … Wikipedia
Star Wars Episode III: Revenge of the Sith — This article is about the film. For the video game, see Star Wars Episode III: Revenge of the Sith (video game). Star Wars Episode III: Revenge of the Sith … Wikipedia
Structured investment vehicle — A structured investment vehicle (SIV) was a type of fund in the shadow banking system from the mid 1980 s until late 2008. The strategy of these funds was to borrow money by issuing short term securities at low interest and then lends that money… … Wikipedia
The Amazing Race 3 — Season run October 2, 2002 – December 18, 2002 Filming dates August 9, 2002 – September 7, 2002 No. of episodes 11 Winning team Flo Pesenti Zach Behr Continents visited … Wikipedia
Radiologic technologist — A radiologic technologist, or radiographer, is a healthcare professional who creates medical images of the body to help health care providers diagnose and treat illness and injury. They work in hospitals, clinics, medical laboratories, nursing… … Wikipedia
IR35 — is a term used to denote United Kingdom tax legislation designed to tax disguised employment at a rate similar to employment. In this context, disguised employees means workers who receive payments from a client via an intermediary and whose… … Wikipedia
Business and Industry Review — ▪ 1999 Introduction Overview Annual Average Rates of Growth of Manufacturing Output, 1980 97, Table Pattern of Output, 1994 97, Table Index Numbers of Production, Employment, and Productivity in Manufacturing Industries, Table (For Annual… … Universalium