Earnings per share (EPS) represents current earnings while price to earnings ratio represents future earnings.
举一反三
- EPS is the ratio of a company's stock price to the company's earnings per share.
- If future earnings are expected to be higher than current earnings (that is, growth in earnings is expected), the P/E will be low. （ ）
- The price-earnings ratio is calculated by dividing: A: Market value per share by earnings per share. B: Earnings per share by market value per share. C: Dividends per share by earnings per share. D: Dividends per share by market value per share. E: Market value per share by dividends per share.
- EPS is short for Earnings per Share.
- A P/E ratio considers _____ A: profits relative to earnings B: price of the stock relative to earnings C: price of a preferred stock relative to earnings D: profits relative to equity