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Learning to Invest / Terms, Definitions, & Jargon
|Subject: Re: Understandiing Book Value Per Share||Date: 8/11/2011 6:46 PM|
|Author: TMFSandman||Number: 2169 of 2221|
By the way, is there a way to figure out the interest rate that a company pays on its long term debt?
The company will state in its 10-K the interest rate it's paying on its debt. That's the place to check.
As far as what qualifies as a one-time item and what doesn't, that's very specific to each company. If the company does one big acquisition and hasn't done any other in its 10 year history, you might not want to penalize them for the amount they spent on that acquisition. If they do acquisitions every year, like MMM or CSCO, you'd definitely want to include that.
Likewise, even if a company says something is one-time and/or shouldn't be factored in when valuing the company (such as PFE with the expenses related to their large acquisitions or CSCO with their stock-based compensation) you should take it with a grain of salt and use your own judgment.
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