Finance Gurus - help me decode this line from a news report...

[JohnT]

Yell Group PLC (English) company bought out TransWestern Publishing (American) in our industry. In an article about how the Brits overpaid by 200+ million pounds, the following sentence appears:

Yell trades on 13.3x 05 EP/FCF at a discount to directories peers on 14.9x, and to pan-European media on 18.9x.

What am I missing? Here's how I read it:

"Yell trades at 13.3X 2005 Earnings Per/Free Cash Flow..."

Perhaps I'm stupid (always a strong possibility), perhaps it's a typo, but I'm just not getting this formulation. "Earnings Per Free Cash Flow?" Are they implying that the FCF figure is on a per/share basis?

Thanks!

http://www.newratings.com/analyst_news/article_827720.html

[Japher]

Why would the do a "Earning Per/" when the "/" is the "Per"?

Not that I get it... and maybe Per = Percentage

eh?

Maybe it's an "Earning Percentage" per "Free Cash Flow"

[JohnT]

I've seen some reports that have the abbreviation EP/S when discussing Earnings Per Share... you're right, the "per" coupled with the "/" doesn't make sense. But I have seen it, which could be the source of my confusion in the OP.

[BeBMan]

I think there's some hidden message in it, maybe for terrorists or worse.

[JohnT]

It's a message from the Tri-Lateral Commission, by way of the Bilderberg Group, to the Illuminati!

Fnord!

[BeBMan]

If we are able to decode it, we can rule Teh Universe!!!

[JohnT]

I'll just take this little blue planet over here, if you don't mind. Thanks!

[Japher]

You mean that one that's blocking my view of Saturn!?

[BeBMan]

I think the finance gurus aren't responding because they want to decode the truth for themselves only

[JohnT]

[DanS]

Yell trades on 13.3x 05 EP/FCF at a discount to directories peers on 14.9x, and to pan-European media on 18.9x.

Yell trades at 13.3 times 2005 equity (?) price/free cash flow, a slight discount to its directories peers who are at 14.9 times and to its pan-European media peers who are at 18.9 times.

[JohnT]

Are you assuming that the "E" stands for "Equity"?

That does make more sense... I think. Is it a common formulation (I'm thinking not, but...)?

[Dauphin]

Nay mind

[DanS]

Not sure whether it's a common formulation.

[MichaeltheGreat]

EP = Estimated Profits?

It's an odd one, I haven't seen that notation before.