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".

No comments: