Ten Stock Analysis Ratios Used By The Pros: Earnings per Share (EPS)

How far are you willing to go in the analysis of your stocks?

Gain access to these 10 key ratios that are used by investment professionals day in, day out.

In order to be one step ahead of the game, you need to dig deeper into the balance sheets, income statements and cash flows of companies to discover which ones are cheap and which ones are overvalued. UK Investor Magazine have compiled “The Top 10 Ratios Used by The Pros” to help our readers trade more effectively. To download all 10 ratios + more complete the form at the end of this page.

You will gain insight into essential indications of:
  • Valuation
  • Solvency
  • Leverage
  • Cash Flow
The guide you are about to download will tell you in great detail how to apply the 10 ratios and the formulas needed to calculate the ratios.

Each ratio has an explanation of the investment decision process and how you can interpret the ratios. These ratios will give you the ability to sift out the overvalued companies in a sector and those carrying an alarming amount of debt.

First Key Ratio :

Earnings per Share (EPS)

Earnings per share is the net profit per share outstanding. It is used to judge the profitability of a single company and is a key element in the Price-to-Earnings ratio. EPS can be calculate using two methods; basic and diluted. Diluted EPS takes into consideration the impact of warrants, stock options and convertible securities when calculating EPS and is more commonly used.

EPS = Net Income/Number of Share Outstanding

To download a complete PDF of all the ratios we will be talking about in this article, please complete the form below.

Next Ratio: Price-to-Earnings >>

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