What Is A Good Earning Per Share?

EPS is typically considered good when a corporation’s profits outperform those of similar companies in the same sector.

For example, Gatorade (a Pepsico brand) has dominated the sports drink market for decades, trouncing its competitors with a 75 percent share of this niche market.

Is it better to have a higher or lower EPS?

The higher the earnings per share of a company, the better is its profitability. While calculating the EPS, it is advisable to use the weighted ratio, as the number of shares outstanding can change over time.

What is a good EPS for a company?

The EPS Rating takes into account the growth and stability of a company’s earnings over the past three years, with extra weighting put on the most recent two quarters. The result is assigned a rating of 1 to 99, with 99 being best.

What is a good price to earnings ratio?

A higher P/E ratio shows that investors are willing to pay a higher share price today because of growth expectations in the future. The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings.

What is the average earnings per share?

Calculating earnings per share

It is calculated by taking the difference between a company’s net income and dividends paid for preferred stock and then dividing that figure by the average number of shares outstanding. Thus this company’s earnings came to $1.63 per share.

What is a good book value per share?

The price-to-book (P/B) ratio has been favored by value investors for decades and is widely used by market analysts. Traditionally, any value under 1.0 is considered a good P/B value, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value under 3.0.

Is EPS a good measure of performance?

EPS is not a good measure of performance because it does not consider the opportunity cost of capital and can be manipulated by short-term actions. Assume that a company has 20,000 outstanding shares and earnings available to shareholders is Rs 200,000. The EPS is (Rs 2,00,000/ 20,000), or Rs 10.

Is a negative EPS bad?

What a Negative EPS Means. Sometimes they lose money, in which case their earnings are negative. When earnings are negative, then EPS will be negative, too. A negative EPS tells you exactly how much money the company lost per share of outstanding stock, which is why you’ll also see it called “net loss per share.”

Should I buy a stock with negative EPS?

A negative P/E may not be reported. Instead, the EPS might be reported as “not applicable” for quarters in which a company reported a loss. Investors buying stock in a company with a negative P/E should be aware that they are buying shares of an unprofitable company and be mindful of the associated risks.

Which company has the highest EPS?

Top Companies in India by Earning Per Share (EPS) – BSE

SrCompanyEPS
1MRF Add to Watchlist Add to Portfolio2,403.46
2Polson Add to Watchlist Add to Portfolio873.42
3Eicher Motors Add to Watchlist Add to Portfolio746.40
4Honeywell Autom Add to Watchlist Add to Portfolio523.86

5 more rows

What is Apple’s PE ratio?

Apple has a P/E ratio of 17.73, based on the last twelve months. That is equivalent to an earnings yield of about 5.6%. Check out our latest analysis for Apple.

What is Amazon’s PE ratio?

Amazon.com PE Ratio. : 91.09 (As of Today)

What is a good price per sales ratio?

Price-to-sales (P/S) ratios between one and two are generally considered good, while a P/S ratio of less than one is considered excellent. As with all equity valuation metrics, P/S ratios can vary significantly between industries.