Eps And Book Value Per Share Formula

The basic p e formula takes the current stock price and eps to find the current p e.

Eps and book value per share formula. Carry value or book value eps is the real cash worth of each share of company stock. To find the equity you should subtract the company s liabilities from its assets. Earnings per share eps is the portion of a company s profit allocated to each outstanding share of common stock.

There are several ways to calculate earnings per share. Cash eps is the. Eps for a company with preferred and common stock net income preferred.

The book value per share is the minimum cash value of a company and its equity for common shareholders. Total equity preferred equity and total outstanding shares. Earnings per share is calculated using the formula given below earnings per share eps net income of the company dividend to preferred shareholders average outstanding shares of the company earnings per share eps 10 0 million 4 5 million earnings per share eps 2 22.

The eps formula indicates a company s ability to produce net profits for common shareholders. Book value per share is also used in the return on equity formula or roe formula when calculating on a per share basis. Roe is net income divided by stockholder s equity.

Earnings per share formula. Net income on a per share basis is referred to as eps or earnings per share. In this case it refers to calculating eps earnings per share formula eps eps is a financial ratio which divides net earnings available to common shareholders by the average outstanding shares over a certain period of time.

Eps is found by taking earnings from the last twelve months divided by the weighted average shares outstanding. When compared to the current market value per share the book value per share can provide information on how a company s stock is valued. Retained eps is the amount of the earnings kept by the company rather than shared as dividends.