Earnings per share (EPS) is a company's net profit divided by the number of common shares it has outstanding. 1 EPS indicates how much money a company makes for each share of its stock and is a widely used metric for estimating corporate value.
Full Answer
What is price earnings ratio (P/E)?
The Price Earnings Ratio (P/E Ratio) is the relationship between a company’s stock price and earnings per share. It gives investors a better sense of the value of a company. The P/E shows the expectations of the market and is the price you must pay per unit of current (or future) earnings
What is P/S ratio in stocks?
Key Takeaways The P/S ratio is a key analysis and valuation tool that shows how much investors are willing to pay per dollar of sales for a stock. The P/S ratio is typically calculated by dividing the stock price by the underlying company's sales per share.
What does Eastmain resources (Erto) stock's PE ratio indicate?
The P/E ratio of Eastmain Resources Inc. (ER.TO) is -4.66, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.
What does it mean when a company has a low P/E?
Low P/E. Companies with a low Price Earnings Ratio are often considered to be value stocks. It means they are undervalued because their stock price trade lower relative to its fundamentals. This mispricing will be a great bargain and will prompt investors to buy the stock before the market corrects it.
What is a good P S ratio for a stock?
In general, a good price-to-sales ratio (P/S ratio) is one above the P/S ratio of the S&P 500. A company with a P/S ratio higher than that of the S&P 500 is able to show that investors are willing to pay a higher premium for the company's revenues than for the revenues of the stock market as a whole.
What does P's in stocks mean?
price-to-salesThe price-to-sales (P/S) ratio is a valuation ratio that compares a company's stock price to its revenues. It is an indicator of the value that financial markets have placed on each dollar of a company's sales or revenues.
Is high PS ratio good?
The ratio describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. Generally speaking, the lower the P/S ratio, the better.
Is a high or low PE ratio better?
P/E ratio, or price-to-earnings ratio, is a quick way to see if a stock is undervalued or overvalued. And so generally speaking, the lower the P/E ratio is, the better it is for both the business and potential investors. The metric is the stock price of a company divided by its earnings per share.
What is PE and PS?
Market participants frequently talks about Price earnings ratio famously referred as “PE ratio”. However, there are times when Price to sales ratio known as “PS ratio” becomes more important and relevant.
What is PE and P S?
But within this approach there are different ratios that can be used, so the question is: which of them is the best? In this post we will compare three of the best known ratios: P/E (Price-to-Earnings), P/B (Price-to-Book) and P/S (Price-to-Sales).
What is a good quick ratio?
A good quick ratio is any number greater than 1.0. If your business has a quick ratio of 1.0 or greater, that typically means your business is healthy and can pay its liabilities. The greater the number, the better off your business is.
What is a good trailing P E ratio?
So, what is a good PE ratio for a stock? A “good” P/E ratio isn't necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.
What is Tesla's price-to-sales ratio?
As of today, Tesla's share price is $711.12. Tesla's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2022 was $54.88. Hence, Tesla's PS Ratio for today is 12.96.
Is 30 a good PE ratio?
P/E 30 Ratio Explained A P/E of 30 is high by historical stock market standards. This type of valuation is usually placed on only the fastest-growing companies by investors in the company's early stages of growth. Once a company becomes more mature, it will grow more slowly and the P/E tends to decline.
Is 80 a good PE ratio?
For instance, if the relative P/E ratio of a counter is 80%, when compared to the benchmark P/E levels, it means that the company's absolute ratio is lower than the industry. Likewise, Relative P/E ratio higher than 100% implies that a business has outperformed the benchmark or the industry in the given time frame.
Is 50 a good PE ratio?
Historically, a Nifty 50 PE ratio of more than 25 means the market is overvalued. Before the 2008 market crash, the Nifty PE ratio was 28.29. And we all know what happened next.
Who are Eastmain Resources Inc. (ER.TO)'s key executives?
Eastmain Resources Inc. (ER.TO)'s management team includes the following people: Mr. Blair Schultz Acc.Dir. , Interim Pres, CEO & Director (Age...
Who are some of Eastmain Resources Inc. (ER.TO)'s key competitors?
Some companies that are related to Eastmain Resources Inc. (ER.TO) include Liquor Stores N.A. (LIQ) , PHX Energy Services (PHX) , Eskay Mining (...
What other stocks do shareholders of Eastmain Resources Inc. (ER.TO) own?
Based on aggregate information from My MarketBeat watchlists, some companies that other Eastmain Resources Inc. (ER.TO) investors own include Inno...
What is Eastmain Resources Inc. (ER.TO)'s stock symbol?
Eastmain Resources Inc. (ER.TO) trades on the Toronto Stock Exchange (TSX) under the ticker symbol "ER."
How do I buy shares of Eastmain Resources Inc. (ER.TO)?
Shares of ER and other Canadian stocks can be purchased through an online brokerage account. Popular online brokerages with access to the Canadian...
How much money does Eastmain Resources Inc. (ER.TO) make?
Eastmain Resources Inc. (ER.TO) (TSE:ER) has a market capitalization of C$0.00.
How many employees does Eastmain Resources Inc. (ER.TO) have?
Eastmain Resources Inc. (ER.TO) employs 15 workers across the globe.
What is Eastmain Resources Inc. (ER.TO)'s official website?
The official website for Eastmain Resources Inc. (ER.TO) is www.eastmain.com .
How can I contact Eastmain Resources Inc. (ER.TO)?
Eastmain Resources Inc. (ER.TO)'s mailing address is 2400-120 Adelaide St W, TORONTO, ON M5H 1T1, Canada . The company can be reached via phone at...
What is EPS adjusted for?
It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution. The higher a company's EPS, the more profitable it is considered to be.
Why is EPS higher?
A higher EPS indicates greater value because investors will pay more for a company's shares if they think the company has higher profits relative to its share price. EPS can be arrived at in several forms, such as excluding extraordinary items or discontinued operations, or on a diluted basis. 1:10.
How can a company game its EPS?
For instance, a company can game its EPS by buying back stock, reducing the number of shares outstanding, and inflating the EPS number given the same level of earnings. Changes to accounting policy for reporting earnings can also change EPS.
Why is it more accurate to use a weighted average number of common shares over the reporting term?
It is more accurate to use a weighted average number of common shares over the reporting term because the number of shares can change over time. Any stock dividends or splits that occur must be reflected in the calculation of the weighted average number of shares outstanding.
What is diluted EPS?
Analysts will sometimes distinguish between “basic” and “diluted” EPS. Basic EPS consists of the company’s net income divided by its outstanding shares. It is the figure most commonly reported in the financial media, and it is also the simplest definition of EPS.
What is the importance of EPS?
An important aspect of EPS that is often ignored is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS, but one could do so with fewer net assets; that company would be more efficient at using its capital to generate income and, all other things being equal, would be a "better" company in terms of efficiency. A metric that can be used to identify more efficient companies is the return on equity (ROE).
How to calculate EPS?
To calculate a company's EPS, the balance sheet and income statement are used to find the period-end number of common shares, dividends paid on preferred stock (if any), and the net income or earnings.
What does low P/E mean in stocks?
Companies with a low Price Earnings Ratio are often considered to be value stocks. It means they are undervalued because their stock price trade lower relative to its fundamentals. This mispricing will be a great bargain and will prompt investors to buy the stock before the market corrects it. And when it does, investors make a profit as a result of a higher stock price. Examples of low P/E stocks can be found in mature industries that pay a steady rate of dividends#N#Dividend A dividend is a share of profits and retained earnings that a company pays out to its shareholders. When a company generates a profit and accumulates retained earnings, those earnings can be either reinvested in the business or paid out to shareholders as a dividend.#N#.
What is justified P/E ratio?
The justified P/E ratio#N#Justified Price to Earnings Ratio The justified price to earnings ratio is the price to earnings ratio that is "justified" by using the Gordon Growth Model. This version of the popular P/E ratio uses a variety of underlying fundamental factors such as cost of equity and growth rate.#N#above is calculated independently of the standard P/E. In other words, the two ratios should produce two different results. If the P/E is lower than the justified P/E ratio, the company is undervalued, and purchasing the stock will result in profits if the alpha#N#Alpha Alpha is a measure of the performance of an investment relative to a suitable benchmark index such as the S&P 500. An alpha of one (the baseline value is zero) shows that the return on the investment during a specified time frame outperformed the overall market average by 1%.#N#is closed.
What is a growth stock?
Companies with a high Price Earnings Ratio are often considered to be growth stocks. This indicates a positive future performance, and investors have higher expectations for future earnings growth and are willing to pay more for them. The downside to this is that growth stocks are often higher in volatility, and this puts a lot of pressure on companies to do more to justify their higher valuation. For this reason, investing in growth stocks will more likely be seen as a risky#N#Risk Aversion Risk aversion refers to the tendency of an economic agent to strictly prefer certainty to uncertainty. An economic agent exhibiting risk aversion is said to be risk averse. Formally, a risk averse agent strictly prefers the expected value of a gamble to the gamble itself.#N#investment. Stocks with high P/E ratios can also be considered overvalued.
How to find current P/E?
The basic P/E formula takes the current stock price and EPS to find the current P/E. EPS is found by taking earnings from the last twelve months divided by the weighted average shares outstanding#N#Weighted Average Shares Outstanding Weighted average shares outstanding refers to the number of shares of a company calculated after adjusting for changes in the share capital over a reporting period. The number of weighted average shares outstanding is used in calculating metrics such as Earnings per Share (EPS) on a company's financial statements#N#. Earnings can be normalized#N#Normalization Financial statements normalization involves adjusting non-recurring expenses or revenues in financial statements or metrics so that they only reflect the usual transactions of a company. Financial statements often contain expenses that do not constitute a company's normal business operations#N#for unusual or one-off items that can impact earnings#N#Net Income Net Income is a key line item, not only in the income statement, but in all three core financial statements. While it is arrived at through#N#abnormally. Learn more about normalized EPS#N#Normalized EPS Normalized EPS refers to adjustments made to the income statement to reflect the up and down cycles of the economy.#N#.
What is the difference between EPS and fair value?
It is a popular ratio that gives investors a better sense of the value. Fair Value Fair value refers to the actual value of an asset - a product, stock, or security - that is agreed upon by both the seller and the buyer.
What is it called when you own stock?
An individual who owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and earnings (should the company ever be dissolved). The terms "stock", "shares", and "equity" are used interchangeably. of different prices and earnings levels.
What is equity research analyst?
Equity Research Analyst An equity research analyst provides research coverage of public companies and distributes that research to clients.
About Eastmain Resources Inc. (ER.TO)
Eastmain Resources Inc., together with its subsidiary, Eastmain Mines Inc., engages in the acquisition and exploration of mineral resource properties in Canada. The company primarily explores for gold, silver, nickel, platinum, and copper deposits.
0.0 Analyst's Opinion
There is not enough analysis data for Eastmain Resources Inc. (ER.TO).
Who are some of Eastmain Resources Inc. (ER.TO)'s key competitors?
Some companies that are related to Eastmain Resources Inc. (ER.TO) include Bluestone Resources (BSR), Liquor Stores N.A. (LIQ), NioCorp Developments (NB), Lucara Diamond (LUC), EMX Royalty (EMX), Karora Resources Inc.
What other stocks do shareholders of Eastmain Resources Inc. (ER.TO) own?
Based on aggregate information from My MarketBeat watchlists, some companies that other Eastmain Resources Inc.
What is Eastmain Resources Inc. (ER.TO)'s stock symbol?
Eastmain Resources Inc. (ER.TO) trades on the Toronto Stock Exchange (TSX) under the ticker symbol "ER."
How do I buy shares of Eastmain Resources Inc. (ER.TO)?
Shares of ER and other Canadian stocks can be purchased through an online brokerage account.
How much money does Eastmain Resources Inc. (ER.TO) make?
Eastmain Resources Inc. (ER.TO) has a market capitalization of C$0.00.
How were Empire Resources' earnings last quarter?
Empire Resources Inc (NASDAQ:ERS) posted its quarterly earnings results on Friday, March, 31st. The industrial products company reported $0.04 earnings per share (EPS) for the quarter. The industrial products company had revenue of $100.63 million for the quarter. View Empire Resources' earnings history.
Is Empire Resources a good dividend stock?
Empire Resources pays an annual dividend of $0.16 per share and currently has a dividend yield of 0.00%. View Empire Resources' dividend history.
What other stocks do shareholders of Empire Resources own?
Based on aggregate information from My MarketBeat watchlists, some companies that other Empire Resources investors own include Glencore (GLNCY), Gold Fields (GFI), Energy Recovery (ERII), Civeo (CVEO), CSX (CSX), Capstone Mining (CS), California Resources (CRC), Cleveland-Cliffs (CLF), Cloud Peak Energy (CLDPQ) and Bombardier, Inc. Class B (BBD.B).
Where are Empire Resources' headquarters?
Empire Resources is headquartered at 2115 Linwood Ave, FORT LEE, NJ 07024-5020, United States.
EPR Properties (EPR) Q4 FFO and Revenues Beat Estimates
EPR Properties (EPR) delivered FFO and revenue surprises of 12.12% and 2.94%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?
EPR Properties Reports Fourth Quarter and 2021 Year-end Results
KANSAS CITY, Mo., February 22, 2022--EPR Properties (NYSE:EPR) today announced operating results for the fourth quarter and year ended December 31, 2021.
EPR Properties will elevate CEO to chairman as current chair faces age limit
The two trustees leaving the EPR Properties Inc. board have led some of the biggest names in the Kansas City business community.
EPR Properties Announces New Board Members and Role Changes on the Board
KANSAS CITY, Mo., February 18, 2022--EPR Properties (NYSE: EPR) today announced that Lisa G. Trimberger and Caixia Ziegler have been elected to its Board of Trustees.
Equinix (EQIX) Q4 FFO Miss Estimates
Equinix (EQIX) delivered FFO and revenue surprises of -0.80% and 0.50%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?
EPR Properties Declares Monthly Dividend for Common Shareholders
KANSAS CITY, Mo., February 15, 2022--EPR Properties (NYSE:EPR) declared its $0.25 per share monthly cash dividend to common shareholders, with a Feb. 28 record date and payable Mar. 15.
EPR Properties (EPR) Gains As Market Dips: What You Should Know
EPR Properties (EPR) closed at $44.56 in the latest trading session, marking a +0.61% move from the prior day.
What is excess return in stocks?
It is the excess return a stock pays to the holder over and above the risk-free rate for the risk the holder is taking. It is the compensation to the investor for taking a higher level of risk and investing in equity rather than risk-free securities. Equity risk premium and the level of risk are directly correlated.
What is risk free rate of return?
The risk-free rate of return can be benchmarked to longer-term government bonds, Bond Issuers There are different types of bond issuers. These bond issuers create bonds to borrow funds from bondholders, to be repaid at maturity. assuming zero default risk by the government.
What Is The Price-to-Sales (P/S) Ratio?
Understanding Price-to-Sales (P/S) Ratio
- The P/S ratio is a key analysis and valuation tool for investors and analysts. The ratio shows how much investors are willing to pay per dollar of sales. It can be calculated either by dividing the company’s market capitalization by its total sales over a designated period (usually twelve months) or on a per-share basis by dividing the stock price ...
Examples of The Price-to-Sales (P/S) Ratio
- As an example, consider the quarterly sales for Acme Co. shown in the table below. The sales for fiscal year 1 (FY1) are actual sales, while sales for FY2 are analysts’ average forecasts(assume that we are currently in the first quarter or Q1 of FY2). Acme has 100 million shares outstanding, with the shares presently trading at $10 per share. At the present time, Acme’s P/S ratio on a trai…
What Is Earnings Per Share (EPS)?
Formula and Calculation For EPS
- Earnings per share value is calculated as net income (also known as profits or earnings) divided by available shares. A more refined calculation adjusts the numerator and denominator for shares that could be created through options, convertible debt, or warrants. The numerator of the equation is also more relevant if it is adjusted for continuing operations.1 To calculate a compa…
How Is EPS used?
- Earnings per share is one of the most important metrics employed when determining a firm's profitability on an absolute basis. It is also a major component of calculating the price-to-earnings (P/E) ratio, where the E in P/E refers to EPS. By dividing a company's share price by its earnings per share, an investor can see the value of a stock in terms of how much the market is willing to …
Basic EPS vs. Diluted EPS
- The formula in the table above calculates the basic EPSof each of these select companies. Basic EPS does not factor in the dilutive effect of shares that could be issued by the company. When the capital structure of a company includes items such as stock options, warrants, or restricted stock units (RSU), these investments—if exercised—could increase the total number of shares outstan…
EPS Excluding Extraordinary Items
- Earnings per share can be distorted, both intentionally and unintentionally, by several factors. Analysts use variations of the basic EPS formula to avoid the most common ways that EPS may be inflated. Imagine a company that owns two factories that make cellphone screens. The land on which one of the factories sits has become very valuable as new developments have surrounde…
EPS from Continuing Operations
- A company started the year with 500 stores and had an EPS of $5.00. However, assume that this company closed 100 stores over that period and ended the year with 400 stores. An analyst will want to know what the EPS was for just the 400 stores the company plans to continue with into the next period. In this example, that could increase the EPS because the 100 closed stores wer…
EPS and Capital
- An important aspect of EPS that is often ignored is the capital that is required to generate the earnings (net income) in the calculation. Two companies could generate the same EPS, but one could do so with fewer net assets; that company would be more efficient at using its capital to generate income and, all other things being equal, would be a "better" company in terms of effici…
EPS and Dividends
- Although EPS is widely used as a way to track a company’s performance, shareholders do not have direct access to those profits. A portion of the earnings may be distributed as a dividend, but all or a portion of the EPS can be retained by the company. Shareholders, through their representatives on the board of directors, would have to change the portion of EPS that is distrib…
EPS and Price-To-Earnings
- Making a comparison of the P/E ratio within an industry group can be helpful, though in unexpected ways. Although it seems like a stock that costs more relative to its EPS when compared to peers might be “overvalued,” the opposite tends to be the rule. Regardless of its historical EPS, investors are willing to pay more for a stock if it is expected to grow or outperfor…