How to calculate Earning per share ratio

What is Earning Per Share (EPS)? | Basic vs Diluted EPS

EPS tells you how much is each stock’s share in the profits made by a company.

What is PE Ratio? (Trailing P/E vs Forward P/E)

P/E ratio means price to earnings ratio. For example, if the current price of a stock is Rs. 100 and it has earned Rs. 5 per share (EPS) for its shareholders in the past 12 months. The P/E ratio works out to be 100/5=20.

What are Growth Stocks with Examples? | How to identify Growth Stocks?

What is a Growth Stock? Let’s see the parameters using which one can identify or at least shortlist what growth stocks are: - High PE Ratio Growth stocks trade at high PE ratiosIt means people are ready to pay higher prices for lesser earningsPE ratio is nothing but what price an investor is paying for … Continue reading What are Growth Stocks with Examples? | How to identify Growth Stocks?

What is a Value Stock? How to Identify one?

What is/How to Identify a Value Stock? There aren’t any ultimate indicators or the thumb rule of identifying value socks, but following are the major parameters that can be used to focus and short list value stocks list: - Low Price-to-Earnings (PE) Ratio A stock which is trading at below average of all the other … Continue reading What is a Value Stock? How to Identify one?

Return on Capital Employed (ROCE) | Analysis, Formula & Detailed Example

Return On Capital Employed (ROCE) is a financial ratio. It determines a company’s profitability and the efficiency with which the capital is applied. A higher ROCE indicates a more cost-effective use of capital. It is also called as Return On Total Capital (ROTC). Introduction We know that when a company starts it has 2 types … Continue reading Return on Capital Employed (ROCE) | Analysis, Formula & Detailed Example