metrics explained

EPS vs PE: What's the Difference?

EPS and PE are two important financial ratios used to measure a company's profitability and share price. They are both calculated by dividing a company's net income by its number of shares outstanding. EPS is the earnings per share, while PE is the price-to-earnings ratio.

What is EPS?

EPS is a company's earnings per share. It is calculated by dividing a company's net income by its number of shares outstanding. EPS is a popular metric because it allows investors to directly compare the profitability of different companies.

What is PE?

PE is a company's price-to-earnings ratio. It is calculated by dividing a company's stock price by its EPS. PE is a popular metric because it allows investors to directly compare the valuations of different companies.

What's the difference between EPS and PE?

EPS is a measure of profitability, while PE is a measure of valuation. EPS is calculated by dividing a company's net income by its number of shares outstanding. PE is calculated by dividing a company's stock price by its EPS.

Why is EPS important?

EPS is a popular metric because it allows investors to directly compare the profitability of different companies. EPS is also a good indicator of a company's future profitability, as it shows how much of its income is being generated per share.

Why is PE important?

PE is a popular metric because it allows investors to directly compare the valuations of different companies. PE is also a good indicator of a company's future share price, as it shows how much investors are willing to pay for each dollar of earnings.

What are some other important financial ratios?

There are a number of other important financial ratios used to measure a company's performance and share price. These include the price-to-earnings growth ratio (PEG), the price-to-sales ratio (PSR), the price-to-book ratio (P/B), and the enterprise value-to-EBITDA ratio (EV/EBITDA).

What is the difference between EPS and PE?

EPS is a measure of profitability, while PE is a measure of valuation. EPS is calculated by dividing a company's net income by its number of shares outstanding. PE is calculated by dividing a company's stock price by its EPS.

Why is EPS important?

EPS is a popular metric because it allows investors to directly compare the profitability of different companies. EPS is also a good indicator of a company's future profitability, as it shows how much of its income is being generated per share.

Why is PE important?

PE is a popular metric because it allows investors to directly compare the valuations of different companies. PE is also a good indicator of a company's future share price, as it shows how much investors are willing to pay for each dollar of earnings.

What are some other important financial ratios?

There are a number of other important financial ratios used to measure a company's performance and share price. These include the price-to-earnings growth ratio (PEG), the price-to-sales ratio (PSR), the price-to-book ratio (P/B), and the enterprise value-to-EBITDA ratio (EV/EBITDA).

What is the difference between EPS and PE?

EPS is a measure of profitability, while PE is a measure of valuation. EPS is calculated by dividing a company's net income by its number of shares outstanding. PE is calculated by dividing a company's stock price by its EPS.

Why is EPS important?

EPS is a popular metric because it allows investors to directly compare the profitability of different companies. EPS is also a good indicator of a company's future profitability, as it shows how much of its income is being generated per share.

Why is PE important?

PE is a popular metric because it allows investors to directly compare the valuations of different companies. PE is also a good indicator of a company's future share price, as it shows how much investors are willing to pay for each dollar of earnings.

What are some other important financial ratios?

There are a number of other important financial ratios used to measure a company's performance and share price. These include the price-to-earnings growth ratio (PEG), the price-to-sales ratio (PSR), the price-to-book ratio (P/B), and the enterprise value-to-EBITDA ratio (EV/EBITDA).

What is the difference between EPS and PE?

EPS is a measure of profitability, while PE is a measure of valuation. EPS is calculated by dividing a company's net income by its number of shares outstanding. PE is calculated by dividing a company's stock price by its EPS.

Why is EPS important?

EPS is a popular metric because it allows investors to directly compare the profitability of different companies. EPS is also a good indicator of a company's future profitability, as it shows how much of its income is being generated per share.

Why is PE important?

PE is a popular metric because it allows investors to directly compare the valuations of different companies. PE is also a good indicator of a company's future share price, as it shows how much investors are willing to pay for each dollar of earnings.

What are some other important financial ratios?

There are a number of other important financial ratios used to measure a company's performance and share price. These include the price-to-earnings growth ratio (PEG), the price-to-sales ratio (PSR), the price-to-book ratio (P/B), and the enterprise value-to-EBITDA ratio (EV/EBITDA).

What is the difference between EPS and PE?

EPS is a measure of profitability, while PE is a measure of valuation. EPS is calculated by dividing a company's net income by its number of shares outstanding. PE is calculated by dividing a company's stock price by its EPS.

Why is EPS important?

EPS is a popular metric because it allows investors to directly compare the profitability of different companies. EPS is also a good indicator of a company's future profitability, as it shows how much of its income is being generated per share.

Why is PE important?

PE is a popular metric because it allows investors to directly compare the valuations of different companies. PE is also a good indicator of a company's future share price, as it shows how much investors are willing to pay for each dollar of earnings.

What are some other important financial ratios?

There are a number of other important financial ratios used to measure a company's performance and share price. These include the price-to-earnings growth ratio (PEG), the price-to-sales ratio (PSR), the price-to-book ratio (P/B), and the enterprise value-to-EBITDA ratio (EV/EBITDA).

What is the difference between EPS and PE?

EPS is a measure of profitability, while PE is a measure of valuation. EPS is calculated by dividing a company's net income by its number of shares outstanding. PE is calculated by dividing a company's stock price by its EPS.

Why is EPS important?

EPS is a popular metric because it allows investors to directly compare the profitability of different companies. EPS is also a good indicator of a company's future profitability, as it shows how much of its income is being generated per share.

Why is PE important?

PE is a popular metric because it allows investors to directly compare the valuations of different companies. PE is also a good indicator of a company's future share price, as it shows how much investors are willing to pay for each dollar of earnings.

What are some other important financial ratios?

There are a number of other important financial ratios used to measure a company's performance and share price. These include the price-to-earnings growth ratio (PEG), the price-to-sales ratio (PSR), the price-to-book ratio (P/B), and the enterprise value-to-EBITDA ratio (EV/EBITDA).

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