View Earnings Per Share Ratio Analysis Interpretation Pics. Earnings per share formula (eps). Earnings per share ratio (eps ratio) is computed by the following formula:
Home » financial ratio analysis » earnings per share (eps). Earnings per share (eps) is an important financial metric which is calculated by dividing the total earnings per share formula. A company with a high earnings per share ratio is capable of generating a significant dividend for investors, or it may plow the funds back into its business for more growth;
Price earning ratio is calculated by dividing price of a product with the earning of that product and it is used to calculate earnings against the price of a product particularly stocks.
Many traders credit earnings per share (eps) as their secret weapon to figuring out the best stocks to trade. The formula for eps is net profit after tax (npat) divided by number of shares on issue, with the results. Eps analysis determines that how much net income is earned by number of shares outstanding during a fiscal year. Even though earnings per share data have limitations because of the different accounting policies that may be used for determining 'earnings', a consistently determined 3an entity that discloses earnings per share shall calculate and disclose earnings per share in accordance with this standard.
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