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Author: kcanant Three stars, 500 posts Old School Fool CAPS All Star Most Active, Foolanthropy 2013 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 211993  
Subject: Re: A fun exercise Date: 10/6/2012 10:11 AM
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Whoops!
I hit the submit button early.
As a fun exercise, try this calculation for both
 Amazon and Walmart.

I don't know about the "growth rate above inflation"
or the "cyclically adjusted earnings yield",
but I figured out the following for WMT and AMZN.

I defined earnings yield as EBIT/EV
and cribbed the most recent annual figures
from Yahoo.

                    WMT     AMZN
ROE                22.9%   4.94%

Earnings yield      8.9%    .89%


Both companies have a business based on selling
"stuff" at a low price, but have very different
investment characteristics, no?   

-kcanant
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