The Earnings Per Share (EPS) indicator is used in fundamental analysis of a stock. It's a simple division of the company's profit divided by the number of shares of its stock. A higher number indicates a more valuable company.
This simple number attempts to normalize the comparisons between companies, honing in on how much profit is allocated to one single share.
For example, look at these two theoretical companies:
Even though the two companies couldn't be more different, with Company 2 being stupidly large - it's Company 1 that is ~17x more profitable per share.
https://www.investopedia.com/terms/e/eps.asp Fundamental analysis
#toolong #trading
Knowing *when* to buy into a stock is fairly straight forward. You apply Jerry Robinson's *180 Trading Strategy* ([[202003201255 180 Trading Strategy]...
The **Price-to-Earnings Ratio** (P/E Ratio) is used in fundamental analysis of a stock. It's a simply the *current price of the stock* divided by the ...
The *Price/Earnings-to-Growth Ratio* (PEG Ratio), is used in fundamental analysis ([[202003201348 Fundamental analysis]]) of a stock. It's calculated ...