Cash to market value (Cash yld)
Cash and equivalents on the balance sheet as a percentage of what the shares cost.
A large cash balance reduces the price you are effectively paying for the operating business.
How it is computed here
Cash and cash equivalents / market capitalisation x 100
Today's market price against the latest available fundamentals. Combines today's market price with the most recently filed fundamentals. It moves whenever the price moves, with nothing having changed in the business. Filed under value. Neither a high nor a low reading is good on its own, so it is never coloured as one.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Cash held against a matching liability, or trapped in a jurisdiction it cannot leave without tax, is not available to you.
- A high figure can mean management has nothing better to do with the money, which is not always good news.
Not meaningful for banks, insurers: the product prints n/m with the reason rather than a number for them.
Questions
How is cash to market value calculated?
Cash and cash equivalents / market capitalisation x 100. Today's market price against the latest available fundamentals. Combines today's market price with the most recently filed fundamentals. It moves whenever the price moves, with nothing having changed in the business.
What does cash to market value tell a value investor?
A large cash balance reduces the price you are effectively paying for the operating business.
When does cash to market value mislead?
Cash held against a matching liability, or trapped in a jurisdiction it cannot leave without tax, is not available to you. A high figure can mean management has nothing better to do with the money, which is not always good news.