Making a comparison of the P/E ratio within an industry group can ... in the financial media and is also the simplest definition of EPS. Diluted EPS, on the other hand, will always be equal ...

Consider the following example: The stock of Company X is trading at $15 and its EPS for the past year was 60 cents, meaning that it has a P/E ratio of 25 (15/0.6) and an earnings yield of 4% (0.6 ...

EPS numbers are most useful when evaluated along with other metrics. The two most common are the price-to-earnings (P/E) ratio, which compares a company's stock price to its EPS, and the return on ...

The P/E ratio is a relative valuation metric calculated as the current stock price divided by earnings per share. Depending on the EPS used in the denominator, the P/E ratio can be calculated ...

P/E = Share Price / Earnings per Share Alternatively ... One analyst might take a high ratio (along with other relevant data) to mean that a company is overvalued, while another might interpret ...

Earnings per share is a company’s net profit divided by the number of outstanding common ... another bank with a relatively low P/E ratio for the sector may be undervalued and likely to rally if it ...