Tuesday, April 3, 2007
Finance
Earnings Per Share - EPS
The portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.
Calculated as:=Net Income/Avg Outstanding shares
Price-Earnings Ratio - P/E Ratio
valuation ratio of a company's current share price compared to its per-share earnings.
Calculated as: Market value of Share/EPS(Earnings per share)
Market Value
1.The current quoted price at which investors buy or sell a share of common stock or a bond at a given time. Also known as "market price".
2. The market capitalization plus the market value of debt. Sometimes referred to as "total market value".
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